Formula
CPM scales the average impression cost up to a thousand:
CPM = ad spend / impressions × 1,000
The result is rounded to the nearest cent.
Assumptions
- Impressions are views, not clicks.
- The spend paid for the full impression count.
Worked example
$500.00 of spend and 40,000 impressions is a CPM of $12.50.
Input definitions
- Impressions
- Times the ad was shown. At least one is required.
- CPM
- The cost of 1,000 of those impressions.
Limitations
This is a planning estimate, not accounting, tax, payroll, or advertising advice. The currency control changes the symbol only.
Questions
Why multiply by 1,000?
The industry quotes the price per thousand views, not the price of a single view.
Can I enter clicks here?
Use the CPC page for clicks. This page is only for impressions.