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# CPM Calculator

## What is CPM?

Once you know how to calculate your cost per 1000 impressions, it's important to understand the term CPM in general. CPM, or cost per 1000 impressions, is the average amount that it costs per 1,000 page views to your website. A cost per mille is the most common method used to measure the price of a web ad today.

## What is an Impression?

An impression (aka. ad view) means the number of times an individual advertisement is displayed. Advertising impressions can be sold on an impression basis, and the more impressions, the more money. In fact, it’s not a measurement of whether an advertisement has been clicked on, but only that it has been displayed, which may or may not lead to a click.

## What is CPM in advertising?

CPM is an important advertising term in the world of a marketer.

CPM in advertising is a common measure of pricing in online marketing. It's also used in the offline world to determine how much advertising a company will pay to place their ads in a certain spot.

A good way to understand CPM is by putting it in context. For example, let’s say you pay for a click on an ad on your website, and that costs you \$2  that means that you, as the advertiser, would be paying that \$2.00 every 1000 times your ad was seen.

## What Is a Good Price for CPM?

It really depends on the strategy that you’re using and what your goal is, which means that there is no solid answer as to what is a good price for CPM.

Let’s say for example, that you're using contextual targeting – in those scenarios, you might see CPM under \$1.00 This is not a bad approach. You are getting tons of impressions and even if you’re trying to achieve engagement goals, it’s possible that you will reach them, too.

If you want to attract customers, you need to provide a good product or service. If you have expectations about how the campaign will output your outcome, then using not always the cheapest strategy is not in your best interest.

## Why calculate CPM with an online calculator?

One of the biggest advantages of online marketing campaigns is how easy they are to analyze and measure. With a little effort and some clever marketing, it’s easy to find out where your advertising dollars are going and whether you're getting the results you want.

Enter your impressions and total budget into our online CPM calculator and get your CPM instantly. Calculating your CPC, or the price you pay for 1000 views, is the first step to determining whether or not your ad was cost-effective.

Low CPM means that your ad is being displayed to Internet users at a relatively low cost. A high CPM means that you're paying more per view.

If you already know how much your e-commerce business will earn in profit or CPM, and enter that number along with the number of impressions you want into our calculator, you'll see how much that would cost you.

Enter your total budget and you'll see the number of impressions you could have with that amount of money.