Thursday, January 22, 2015

Theory of Cost per impression (CPM) CALCULATION


  •        Theory of Cost per impression  (CPM) CALCULATION  



cost per mille (1000) is  the most used metrics on the web world. It is the cost that has to be paid by an advertiser  for serving 1000 impressions .Example : In a campaign , say an Ad of 728×90 is running and the CPM set is $10 and the impressions to be served is 1,00,000 , what will be the actual cost to  the advertiser ?

The formula for CPM   Cost to an Advertiser = CPM x (Impressions / 1000)
            Cost to an Advertiser= 10 x (1,00,000/1000) = 1000
So ,  advertiser has to pay $1000
When CPM needs to be calculated : use the final cost.
CPM = Cost to an Advertiser x 1000 / Impressions 

No comments:

Post a Comment