Cost per Thousand (CPM) describes the Internet advertising cost for reaching 1,000 viewers. This could measure banner ad impressions, Web page views or emailed readers. Calculating CPM allows you to manage your advertising budget and compute advertising rates into an easily comparable figure. As an example, you might purchase 20,000 impressions from one source and 100,000 from another source. The fees aren't comparable, because the number of impressions vary. However, they can both be converted into CPM, which offers an equalized unit of comparison.
Instructions
1. Determine the cost and number of impressions for the advertising slot you are considering purchasing. As an example, a publisher might tell you your banner will display 20,000 times in a month for $200.
2. Divide the number of impressions by 1,000. This gives you the number of "mille," or thousand impressions. In the example, you are getting 20 mille.
3. Divide the cost by the number of mille to calculate CPM. The example advertising slot would cost you $10 per thousand impressions.
