Formula
The formula
CPM = (Total Cost / Total Impressions) x 1000
If you spend $4,500 and generate 1,800,000 impressions, the CPM is $2.50. That number is only meaningful when you compare it with audience quality and campaign outcome.
Guide
How to calculate it
- Use total campaign cost, including fees that are part of the media buy.
- Use total impressions, not clicks or reach.
- Divide cost by impressions and multiply by 1,000.
Metric Definitions
Worked example
| Spend | Impressions | CPM |
|---|---|---|
| $1,200 | 400,000 | $3.00 |
| $3,000 | 1,500,000 | $2.00 |
| $8,000 | 2,000,000 | $4.00 |
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