In digital advertising, there are many metrics you can analyze, from impressions to cost per click and conversions. These KPIs help marketers understand what works, what doesn’t, and what is the return on investment. One of those crucial metrics is Cost per thousand, which measures the advertising costs per number of impressions.
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Templates using this KPI
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Integrations using this KPI
What is cost per thousand?
The cost per thousand (CPM), also called cost per mille, is a marketing term used to know the price that 1,000 advertisem*nt impressions on one web page cost. The CPM model is helpful in measuring the efficiency of advertising and determining how much you pay per click.
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How to calculate cost per thousand
To calculate your CPM rate, you need to take the total cost of your online advertising divided by the total number of impressions and times 1000. For example, if your ad campaign costs you $500 for 100 000 impressions, your CPM would be $5.
Cost per thousand formula (CPM calculator)
Cost per thousand = cost/impressions x 1000
What is a good cost per thousand?
It all depends on your industry, advertising budget, and CPM pricing model, but the average online advertising cost per thousand impressions an advertiser pays would be around $3-$10. if you pay less than $3 for one thousand impressions, you probably have a pretty good CPM.
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What is a bad cost per thousand?
As with any other CPC campaign, if you pay too much for an ad and these advertising costs make your ads' ROI bad, then it should be improved. If you use ad campaigns for brand awareness, it can be harder to calculate; however, ensure your ads do not cost too much just for advertisem*nt impressions.
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Cost per mille KPI examples & templates
Reports give you a good view of all your online marketing strategy metrics and overall online performance. Your CPM advertising metrics can be added to a few KPI templates :
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Social media advertising template
Social media advertising templateThis template is filled with metrics for all your social media online advertising, from LinkedIn ad placements, Facebook ads costs, demographics metrics, YouTube video ads, average CPC, and more.
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PPC report template
PPC report templateGet the best out of your ad campaign. From social media to AdWords and other ad networks, measure your results with this awesome digital marketing report which helps you track important metrics and optimize your efforts.
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Ecommerce report template
Ecommerce report templateA report with all the most critical metrics for your eCommerce business site. Measure your conversion rate, the average acquisition cost, the total number of sales, cost per click, ads cost, ad spend, and revenue from your marketing channels.
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Cost per thousand best practices
Optimize your cost per thousand with these best practices.
Track this KPI with other metrics
Track this KPI with other metricsIt’s important to track other digital marketing metrics alongside your CPM, such as click-through rate (CTR), number of clicks, ad costs, ad views, ad impressions, and conversion rate. This way, you can better overview what works best and why. For example, an ad campaign can have a meager cost per thousand and a very low click-through rate, which doesn’t mean great results for your bottom line.
Optimization of your ad campaigns
Optimization of your ad campaignsUser experience is crucial to get a reasonable cost for a thousand impressions and there are a few cost-effective methods to improve it. For example, optimize your marketing campaigns, choose the right target audience, A/B test with search engines and type of ads (display ads, social media ads). You can also optimize the copy to improve the brand awareness and clicks you get.
Make sure your ads have a good placement
Make sure your ads have a good placementWith web ads and particularly display ads, placement is crucial; make sure your ads are not at the very bottom of pages or in a weird ad placement where the audience can’t correctly see your ad.
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Ressources about CPM
Learn to use This KPI in our Help Center
- How to add goal conversions data in Google Analytics (Universal) dashboards?
- How to create a dashboard with Google Ads?
Read about this KPI on our blog
- Understanding E-Commerce Data: The Essential KPIs
- 15+ Essential Ecommerce Metrics for Your Reporting Dashboard
- Digital Marketing KPIs and Metrics: The Ultimate Guide
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