You may know that CPM stands for Cost Per thousand Impression while M represents Mille. It is used to measure how much it costs to show your ad to a single person. Cost per impression is used both by marketers while deciding their advertising budget and media providers. For example, if an advertiser spends $60 and gets 10,000 impressions, the CPM will be 6%.

Let us learn how a CPM is actually calculated. The formula of CPM is very simple and easy. First of all you need to know how many impressions you want on your ad or the number of times your ad should be seen. Once you come to know, divide the total impression by 1000. 

For example if your ad got 60,000 impressions divided by 1000, the answer will be 60. Then at last divide the first step with the second step you will get your CPM. It is very easy but if you don’t like math I have provided the calculator to facilitate you!

To calculate the CPM you only have to fill the fields I provided in the calculator.

Total cost: the total amount you spend on the ad.

Total impression: the number of times your ad has been seen.

CPM is an important metric for online advertisers to know the results of their ads on which they invest to grow their business. It allows marketers to evaluate brand campaigns, control advertising budget and help in identifying which is offering more affordable reach.  

The average CPM depends on the ad type and platform, every platform has its own CPMs depending on the coverage of user intent. Usually large video ads cost more than a visual display ad. Overall, CMPs depend on the audience, industry, competitions and some other factors, so actual cost may be higher or lower.

Similarly CPM, CPC and CPA are commonly used for pricing online advertising of your business. 

CPC (cost per click): it is used to calculate how much the advertiser paid you when someone clicks on your ad. It is commonly used in Google ads, Facebook ads and other PPC (pay-per-click) platforms.

CPA (cost per acquisition): it is used to identify how much the advertiser paid you when someone completed the action, such as purchasing a product, signing or registering. It helps you to know about the real revenue you are making by the ad.

If you want to know which metric is better for your campaign, it actually depends on the nature of your campaign. If your main focus is Brand visibility, CPC is a better option because you will only pay when someone clicks your ad. In short, you use CPM for exposure and CPC for traffic.

If you are using a CPM calculator, then my advice is to focus on your targeting, creative quality and placement that can improve your results. You should optimize your ads towards the users who are really interested. Make your ads a real interest, not just for getting views!

At last I would say that by using this calculator you can save your time and energy and get accurate results. Use this CPM calculator to better understand your ad spending and optimize your campaigns for better results. I hope your campaigns give you the profit you are expecting!!