How to calculate CPM for an ad campaign
Enter what the campaign cost and how many impressions it delivered. The tool divides the cost by the impressions and multiplies by 1000, which is the standard cost-per-mille figure used across media buying.
It also shows the raw cost per single impression, which is usually a fraction of a cent and rounds to 0.00 on screen. That rounding is exactly why the industry standardized on a per-thousand rate.
- Enter total spend in the Campaign cost field. It starts at 500.
- Enter delivered impressions, not reach, in the Impressions field. It starts at 200000.
- Read the CPM (cost per 1,000) line. That is the figure to compare across placements and platforms.
- To size a media plan, hold the cost fixed and adjust impressions until the CPM matches the rate your vendor quoted.
- Pair the CPM with a click-through or conversion figure before deciding whether a cheap placement was actually cheap.