What this calculator measures
Calculates the cost per one thousand ad impressions.
Common use cases
Use this model when the inputs describe the same decision, period and customer or product scope.
- Calculate advertising cost per thousand impressions.
- Use the result with the recorded inputs: Advertising spend, Impressions.
- Compare multiple scenarios before making a marketing decision.
Formula
CPM = Spend ÷ Impressions × 1,000
CPM standardizes the cost of delivered impressions.
Worked example
$500 spend for 100,000 impressions equals a $5.00 CPM.
How to interpret the result
Used primarily to benchmark brand awareness campaign costs.
Assumptions and limitations
- Impression counts are verified by the ad network.