What Is CPM?
As mentioned above, CPM represents the cost of one thousand ad impressions (or 1000 people to see your ad). When it comes to digital advertising, your CPM will likely vary depending on various factors like ad quality, conversion rate, and more. For real-world advertising like billboards and television, those costs will be static and established before your campaign starts.
An “impression” is every pair of eyeballs seeing your ad. In digital marketing, this would include anyone who scrolls past your ad, is delivered your ad, or clicks on your ad. With traditional advertising, this would consist of everyone who is exposed to the ad. For example, the estimated impressions for a billboard will be based on things like the city’s total population, traffic patterns, billboard location, etc.
How Do You Calculate CPM?
In order to calculate the CPM for your campaign, all you need are the total cost and the total number of impressions you’ve received. Once you have these variables, the calculation for CPM is:
CPM = (Campaign Budget ÷ Impressions) x 1000
If you’re looking to calculate the estimate for the total cost of your campaign, the two variables you will need are total impressions and your estimated CPM. With these variables the calculation is:
Total Cost of Campaign = Total Impressions ÷ 1000 x CPM
You can also calculate the total number of impressions that you’ll receive based on your campaign budget and expected CPM. Once you know these variables, you can use this calculation:
Total Impressions = Campaign Budget ÷ CPM x 1,000
What Is A Good CPM?
Your expected CPM will vary depending on the platform your ad is running on, the location of the ad, and several other factors. Because of this, there’s no “one size fits all” solution for what you should be paying.
Search engine CPM tends to be lower than what you can expect to pay for adverts on a social media platform. The average CPM for a television ad will typically be more than the average bus bench ad.
When planning for a traditional advertising campaign, it’s best to establish your budget first and then analyze all of the advertising options available to you to see where you’ll get the biggest bang for your buck.
When you run advertising campaigns with The Remnant Agency, we can stretch your advertising budget considerably further than it would typically go using remnant advertising. We purchase “remnant media” or ad spaces that are still unsold when they are to go live. We buy these ad spaces at a considerable discount, allowing us to purchase exponentially more impressions for our clients with the same ad budgets they’ve already established.
Contact Us Today To Learn More About Remnant Advertising
If you’re interested in learning more about how we utilize remnant advertising to maximize ROAS for our clients, send us an email now. We have a wide range of remnant advertising opportunities including television advertising, radio advertising, satellite radio advertising, billboard and OOH advertising, and much more.