Cost per Thousand

Cost per Thousand (CPM)

The cost per thousand is an important PPC metric helping you have an idea of your advertising costs per number of impressions.

TRACK YOUR COST PER THOUSAND!

  • 6 +

    Templates using this KPI

  • 3 +

    Integrations using this KPI

What is cost per thousand?

The cost per thousand (CPM), also called cost per mille, is a marketing term used to know the price that 1,000 advertisement impressions on one web page costs.

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How to calculate cost per thousand

To calculate your cost per thousand, 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.

Cost per thousand formula (CPM calculator)

 

Cost per thousand = cost/impressions x 1000

What is a good cost per thousand?

It all depends on your industry, advertising budget and pricing model, but the average online advertising cost per thousand impressions an advertiser pays would be around $3-$10. if you pay less than $3 for one thousand impression, you probably have a pretty good CPM.

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What is a bad cost per thousand?

As with any other CPC campaign, if you pay too much for an ad, and that these advertising costs make it that the ROI of your ads aren’t good, then it should be improved. If you use ad campaigns for brand awareness it can be harder to calculate, however make sure your ads do not cost too much just for advertisement impressions.

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Cost per thousand best practices

Optimize your cost per thousand with these best practices.

Cost-per-click best practices

step 1 icon Track this KPI with other metrics

It’s important to track other digital marketing metrics alongside your CPM such as click-through rate (CTR), ad costs, ad views, ad impressions and conversion rate. This way you can have a better overview of what works best and why. For example an ad campaign can have a very low cost per thousand, but also a very low click-through rate, which doesn’t mean great results for your bottom line.

step 2 icon Optimization of your ad campaigns

To get an effective cost for a thousand impressions, you need to optimize your marketing campaigns, make sure to choose the right audience, search engines, type of ads (display ads, social media ads). You can also optimize the copy to make sure to improve the brand awareness and clicks you get.

step 3 icon Make sure your ads have a good placement

With web ads and particularly display ads, placement is crucial, make sure your ads are not a the very bottom of pages, or a weird ad placement where the audience can’t properly see your ad.

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