Cost per thousand, or CPM, is a measure of how much an advertisement costs versus how many potential customers see the advertisement. Most advertisements are run on a monthly schedule, so they cost a set amount of money to be run per month. An impression is the term used when a potential customer sees the advertisement. Impression values are also usually given on a monthly basis, and are not affected by whether or not the potential customer actually purchases the product.
Instructions
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1
Find the total monthly cost of the advertisement and the total monthly impressions of the advertisement.
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2
Divide the number of impressions by 1,000. For example, if there are 15,000 impressions in June, divide 15,000 by 1,000 to yield 15.
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3
Divide the monthly cost of the advertisement by15 to yield the CPM. For example, if the advertisement costs $60 to rune in June, divide 60 by 15 to yield a CPM of 4 ($4 per thousand impressions). The lower the CPM, the better the value of the advertisement.