Cost per Thousand (CPM) in Digital Marketing
What does $10 per CPM mean?
In this case, the cost per thousand impressions (CPM) would be $10. This means that the advertiser is paying $10 for every 1,000 impressions of their ad.
What does $25 CPM mean?
A $25 CPM basically means that you will be purchasing advertisements for 2.5 cents each. So if you have a campaign goal of purchasing 100,000 impressions at a $25 CPM, then the math looks like this: (100,000/1000) * 25 = $2,500 Total cost of campaign.
How much is 1000 impressions worth?
To calculate your CPM rate, you need to take the total cost of your online advertising divided by the total number of impressions and times 1000. For example, if your ad campaign costs you $500 for 100,000 impressions, your CPM would be $5.
Is a $20 CPM good?
- Optimal CPM Range: $5 - $20
- Engagement-driven campaign: These campaigns focus on generating engagement rather than just impressions. A higher CPM might be justified if the engagement rates are strong, indicating a highly involved audience. Optimal CPM Range: $10 - $30.