CPM Calculator

Posted by Dinesh on

Online advertising calculator helps to calculate CPM (Cost Per Mille) for your advertisement banner impressions revenue.

CPM is being prioritized first by ad-networks since the publisher knows exactly what the expected revenue per impression is.

AdWords allowed advertisers to place keyword-targeted listings but charged advertisers on a CPM basis. Google launched PPC advertising in February 2002, and today, advertising accounts for about 99 percent of Googles revenue.

What is CPM?

Cost Per Mille usually refects the price of 1000 banner impressions in dollar currency. Payment depends on the number of impressions solely. For example, a banner is being shown 200,000 times at CPM of $0.5, means that the payment by theadvertiser to the publisher would be 200,000 * 0.5 / 1000 = $100.

Cost Per Mille Calculation

Formula:

CPM = (Cost to an Advertiser x 1000) / Impressions

where,
Impressions - Number of times an advertisement is displayed
CPM - Cost Per Mille.