Free CPM Calculator - Calculate Cost Per Thousand Impressions
What is CPM in Digital Marketing?
CPM stands for "Cost Per Mille" (Mille means thousand in Latin), representing the cost an advertiser pays for one thousand impressions of their advertisement. It's one of the most common pricing models in digital advertising, particularly for display ads, video ads, and social media campaigns.
How to Calculate CPM?
Our free CPM calculator makes it easy to determine your cost per thousand impressions. Simply enter your total advertising cost and the number of impressions received, then click "Calculate CPM." The formula used is:
CPM = (Total Cost ÷ Total Impressions) × 1000
Why is CPM Important for Marketers?
Understanding CPM helps marketers:
- Compare the efficiency of different advertising channels
- Budget more effectively for campaigns
- Measure the relative cost of reaching audiences
- Optimize ad spend across platforms
CPM vs. CPC vs. CPA: What's the Difference?
While CPM focuses on impressions, other common pricing models include:
- CPC (Cost Per Click): You pay when someone clicks your ad
- CPA (Cost Per Action): You pay when a specific action is completed (like a purchase)
CPM is often preferred for brand awareness campaigns, while CPC and CPA are better for performance-based campaigns.
Industry Average CPM Rates
CPM rates vary widely by industry, platform, and targeting. Here are some approximate averages:
- Display ads: $2-$10 CPM
- Social media ads: $5-$15 CPM
- Video ads: $10-$30 CPM
- Programmatic advertising: $1-$5 CPM
Use our CPM calculator above to determine your specific campaign's performance against these benchmarks.
