Calculating CPM is a simple process that involves dividing the total cost of an ad campaign by the number of impressions gained, then multiplying the result by one thousand.
Cost Per Mille Formula
To calculate the CPM metric, use the formula below:
CPM = (Total cost of ad campaign / Number of impressions generated) x 1000.
Cost Per Thousand Example
Now let’s put the cost per thousand calculations into practice.
For example, if an advertiser pays $500 for an ad campaign that generated 100,000 impressions, the CPM would be:
CPM = ($500 / 100,000) x 1000 = $5.