Complete Guide to CPM Advertising
Understanding Cost Per Mille (CPM) is crucial for any digital marketing strategy. This guide will help you master CPM calculations and optimization.
What is CPM?
CPM, or Cost Per Mille, represents the cost an advertiser pays for one thousand impressions of their ad. It's a standard metric used across various advertising platforms to measure and compare campaign costs.
Why CPM Matters
CPM is essential for:
- Budgeting advertising campaigns
- Comparing costs across different platforms
- Measuring campaign efficiency
- Optimizing ad spend
How to Calculate CPM
The formula for calculating CPM is:
CPM = (Total Cost / Total Impressions) × 1,000Industry Benchmarks
Average CPM rates vary by platform:
- Facebook: $7-$10
- Instagram: $6-$9
- Google Display Network: $2-$4
- LinkedIn: $6-$8
- TikTok: $4-$6