Need to find your ad campaign’s CPM? You’re in the right place. Enter your ad spend and impression total below to calculate your CPM.
Ad spend is how much you paid for a specific advertising campaign or media buy. The cost varies dramatically by outlet, network, publisher and audience. B2B ads are often more expensive than B2C ads, though there are exceptions. (Ads dealing with insurance, loans and mortgages run $40+ per click on Google Ads.)
How much should you spend on digital advertising?
CPM stands for “cost per mille.” (Mille means 1,000.) Thus, CPM is your campaign’s cost per 1,000 impressions. CPT, or cost per thousand, is sometimes used instead of CPM.
CPM is a common measurement for digital, television, radio and podcast advertising campaigns. In a CPM campaign, you’re paying for reach, rather than results. This is the opposite of a CPL (cost per lead) campaign.
An ad impression is someone seeing your advertisement. This is defined differently based on the ad format. A display ad being served on a page is an impression, as is a video view or audio ad listen beyond X seconds (depending on the network).
Frequently Asked Questions about CPM
CPM is the cost per thousand impressions in an ad campaign. It is short for “cost per mille,” or cost per thousand.
The formula for CPM in advertising is ( [Ad Spend] / [Impressions] ) * 1,000. You divide the cost of a campaign by the number of impressions, then multiply the result by 1,000.
Impressions in advertising are the number of times an ad was shown or played. The advertising network, outlet or publisher can provide impressions stats.
It varies wildly. Most audiences can be addressed for a $10 CPM or less (a $100 spend for 10,000 impressions). Premium audiences are far more expensive: For example, a Super Bowl ad might cost roughly $58 on a CPM basis. The same number of impressions on YouTube or another digital platform would cost far less.
Influencer CPM is the cost per 1,000 impressions of your brand through an influencer. The formula is the same as advertising CPM – ( [Ad Spend] / [Impressions] ) * 1,000. This is true on any platform – YouTube, TikTok, Instagram, Facebook, etc. An influencer might charge a CPM based on their audience size, rather than true impressions.
CPA – cost per acquisition – is different from CPM. The formula for CPA is [Ad Spend] / [Leads or Transactions]. CPA in advertising doesn’t take impressions into account – it’s only spend and customer acquisitions, regardless of the number of views or listens.
To calculate CPM in Excel, create columns for ad spend (Column B) and Impressions (Column C). In Cell D2, enter “=(B2/C2)*1000”. This will calculate your cost per thousand impressions, and can be repeated in subsequent rows for other campaigns.
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