CPM calculator is a tool for those who buy and trade online traffic and digital media. It is one of the most often used ad pricing strategies. CPM is an abbreviation for Cost Per Thousand Impressions. Because the minimum level for judging the success of an ad campaign is 1,000 impressions, it is because random events might bias outcomes at lesser levels of exposure. Clicks, for example, can happen by chance on a single ad. Alternatively, a single highly interested person may generate 100 adverts daily but is only likely to click on one from any advertiser.
The two most frequent invoicing models for internet advertising are CPC and CPM. Advertisers pay CPM based on how frequently users see their ad. So, for example, if you buy 20,000 visits at a CPM of $2, you'll wind up paying $40 for the entire campaign.
Advertisers who use CPC advertising pay for actual visitors to their website. For example, you may agree on a CPC of $1.50, which will be paid for every click. Once the campaign has begun and you have seen how the ads perform, you can easily compute CPM from CPC and CPM from CPM using another statistic known as CTR (click-through rate), which says, "how frequently do people click on my advertising?"
How to use the CPM calculator?
- Firstly, fill out any two of the metric boxes. i.e., any 2 among campaign cost, CPM or ad impressions.
- Click on calculate
- It will calculate and return the results in all metrics.
We calculate CPM as follows
CPM = (Ad Spend ÷ Ad Impressions) × 1000