Work out the cost per thousand impressions, the standard unit for buying display and video media.
Dividing spend by the number of impressions gives the unit economics of the channel scaled to a per-thousand basis as the metric is conventionally quoted. The reciprocal — impressions delivered per unit of currency — is shown alongside, because that is the figure to maximise when a budget is fixed. Unit cost is the only number that lets you compare channels with wildly different budgets, and it is the input every bid and budget decision ultimately rests on.
Cost Per Mille
Cost Per Mille (CPM) = Ad spend ÷ Impressions delivered × 1,000
Cost Per Mille (CPM) = Ad spend ÷ Impressions delivered × 1,000 Dividing spend by the number of impressions gives the unit economics of the channel scaled to a per-thousand basis as the metric is conventionally quoted. The reciprocal — impressions delivered per unit of currency — is shown alongside, because that is the figure to maximise when a budget is fixed.
Unit cost is the only number that lets you compare channels with wildly different budgets, and it is the input every bid and budget decision ultimately rests on.
This calculator takes 2 inputs: Ad spend, Impressions delivered. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.