How to Calculate CPM
Determine the campaign budget., Determine the total number of impressions., Do the math.
Step-by-Step Guide
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Step 1: Determine the campaign budget.
An ad campaign is used to convey an idea or product to an audience.
If you decide you have 10,000 dollars to spend on advertising, this is half of the data needed for calculating the CPM. -
Step 2: Determine the total number of impressions.
In order to calculate the cost of one thousand impressions, you need the total number of desired impressions (target audience for the ad).For example, a company wants to run a campaign that will get 500,000 impressions.
Tools like Google Analytics can be used to determine what kind of traffic a website is getting.
Television and print typically use sales or ratings agencies for such data. , The cost of the campaign divided by number of desired impressions, multiplied by 1000: (10,000/500,000) x 1000 =
20.
This company would be spend 20 dollars per 1000 impressions on their ad campaign with a budget of 10,000 dollars. -
Step 3: Do the math.
Detailed Guide
An ad campaign is used to convey an idea or product to an audience.
If you decide you have 10,000 dollars to spend on advertising, this is half of the data needed for calculating the CPM.
In order to calculate the cost of one thousand impressions, you need the total number of desired impressions (target audience for the ad).For example, a company wants to run a campaign that will get 500,000 impressions.
Tools like Google Analytics can be used to determine what kind of traffic a website is getting.
Television and print typically use sales or ratings agencies for such data. , The cost of the campaign divided by number of desired impressions, multiplied by 1000: (10,000/500,000) x 1000 =
20.
This company would be spend 20 dollars per 1000 impressions on their ad campaign with a budget of 10,000 dollars.
About the Author
Denise Smith
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