CPM (Cost Per Thousand Impressions) is the cost that an advertiser pays per thousand ad impressions on a social media platform such as Facebook. It is an important metric that helps to measure the effectiveness of ad campaigns and their reach.
With Databox you can track all your metrics from various data sources in one place.
Cost per Mille (CPM), also known as Cost per Thousand, is an advertising metric that represents the average cost an advertiser pays for every one thousand impressions (views) of their ad. It’s typically used to measure the cost-effectiveness of an ad campaign.
CPM is often used in comparison with other advertising metrics, such as CPC (Cost per Click) or CPA (Cost per Action), because it helps advertisers get more granular insight into the efficiency of different advertising campaigns, channels, or platforms.
Cost per Mille (CPM) is calculated by dividing the total cost of an advertising campaign by the number of impressions and then multiplying by 1,000.
Here’s the exact formula:
CPM = (Total Cost / Total Impressions) * 1000
For example, if an advertiser spends $500 for 50,000 impressions, the CPM would be
CPM = ($500 / 50,000) * 1000 = $10
This means that the advertiser is paying $10 for every one thousand impressions.
No matter which platform you run ads on, CPM will be one of the main metrics you should keep an eye on.
To help you better assess your campaign’s performance, we pulled out some benchmark data from our product that you might find useful.
Keep in mind that these numbers also highly depend on your specific industry and campaign type.
If you want to stay on top of future trends and be able to instantly compare your performance to companies just like yours (in any given industry), you can join our Benchmark Groups – it’s free for everyone!
Because the CPM rate is influenced by a variety of different factors, many marketers struggle to improve it.
But after talking to hundreds of experts and conducting dozens of reports on the topic, we’ve narrowed down some of the main tactics they use to improve their CPM:
More resources to help you improve:
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Databox is a business analytics software that allows you to track and visualize your most important metrics from any data source in one centralized platform.
To track CPM using Databox, follow these steps:
This dashboard helps you inspect every step of your e-commerce funnel so that you can quickly address problem areas.
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CPM, CPC, and CPA are all popular advertising metrics that are used for measuring different aspects of campaign performance.
Each metric serves a different purpose and is used to evaluate different aspects of an advertising campaign.
There are several factors that determine your campaign’s CPM rate, including:
It’s important to note that these factors can interact with each other and CPM rates can vary significantly based on their combinations.
Spotting anomalies in your CPM rate shouldn’t be an immediate reason to panic, but it’s important that you follow it up with a granular investigation and get to the root of the problem.
Here are some of the first things you should assess:
Reach refers to the total number of people who view your ad, both organically and through paid promotion. It indicates the potential audience that can be reached through your ad campaign.
Impressions refer to the number of times an ad was displayed to a user on a social media platform like Facebook. It does not necessarily mean that the user interacted with the ad, but simply that it was shown to them.
CTR (All) is a Facebook Ads metric that measures the ratio of clicks to impressions for all ad placements. It helps to evaluate the ad's relevance to users and overall performance. A higher CTR indicates better user engagement and ad performance.
CPC (All) is the average cost per click across all ad types, placements, and objectives in a Facebook Ads campaign. It shows how much an advertiser pays for each click on their ad.
CTR (Link Click-Through Rate) is a measure of the ratio between clicks and impressions on a link within a Facebook ad. It shows the effectiveness of the ad in engaging the audience and driving traffic to the intended destination.
Subscribed Contacts is a metric that tracks the number of individuals who have opted-in or subscribed to receive emails from your organization through your Mailchimp account.
Keywords in TOP 20 is a SEMrush metric that shows the number of keywords a website ranks for in the top 20 search engine results pages. It helps gauge a website's search visibility and SEO performance.
Domain Organic Keywords is a metric that shows the total number of organic keywords that a domain or website is ranking for in Google search results. It is an important indicator of a website's SEO performance and traffic potential.
Page Reach refers to the number of unique users who have viewed the content on a Facebook Page, including posts and other updates, over a specific period of time.
Post Reach is the number of people who saw your Facebook post. It only counts each person once, even if they viewed the post multiple times.
Post Reach - Paid is the number of people who saw your post due to paid promotion, such as a boosted post or advertisement, on Facebook.
Post Impressions is the number of times a post is displayed in a person's Facebook News Feed or on a page, whether it was clicked on or not.
Post Impressions - Paid is the number of times your Facebook post was seen by people through paid promotion, including ads. It helps track the reach of your content to a targeted audience.
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