Cost per Impression (CPM)
Cost per impression (CPM) is the measure of the cost that one will pay when their ad is shown per one thousand impressions. CPM helps to determine other calculations for ads such as CPC (cost per click) and the CTR (click-through rate).
With the potential to get your ad seen so many times, it makes sense that the best time to use CPM is when you’re looking to maximize brand exposure. For example, if you’ve launched a new product and you just want people to know it’s out there, or if there is an event coming up soon.
How to calculate your cost per impression?
To calculate cost per impression simply divide your total cost spent on CPM campaign by the number of impressions. Example: Imagine you are running a marketing campaign for $1000 and the average CPM is $2.80 (according to google 2018 data). According to the data, you can get your display ad seen around 357,000 times.
Your cost per impressions will be $1000/357,000 = $0.002.