Use our free CPM calculator to measure the cost-effectiveness of your advertising campaigns. Then, take it a step further by comparing your CPM to competitors in your industry.
Why is CPM important?
CPM, or cost per thousand impressions, is a widely used metric in advertising and marketing. It represents the cost of displaying an advertisement to 1,000 people. The significance of CPM in marketing lies in its ability to provide advertisers with a way to measure the cost-effectiveness of their advertising campaigns.
By dividing the total cost of an advertising campaign by the number of impressions received, advertisers can determine the cost per impression, and from that, the cost per 1,000 impressions. This information can then be used to make informed decisions about advertising budgets and to determine the most cost-effective channels for reaching one's target audience.
For example, if an advertiser wants to run an ad on a website and the CPM rate is $2.00, they would pay $2.00 for every 1,000 times their ad is displayed on the website, regardless of the number of clicks it receives. The CPM model is commonly used to price display ads, video ads, and other forms of advertising where the focus is on increasing brand exposure and reach.
How to think about CPM
Context is important when looking at CPM, because it can greatly affect the cost of an advertising campaign. Different websites and platforms have different audiences and levels of engagement, and this can impact the value of an ad and the cost of displaying it.
Consider the following variables:
By considering the context in which an ad will be displayed, you can make informed decisions about the cost of yout campaigns and ensure that they are getting the most value for their money.
How Triple Whale helps advertisers
Triple Whale helps advertisers automatically visualize CPM across marketing platforms with just a few clicks, and pulls in other critical metrics like ROAS, CAC, CPA, LTV, and much, much more.
With our best-in-class attribution tool, Triple Pixel, you can get deep and real-time insight into what channels and campaigns are driving performance. We also provide extremely helpful benchmarks related to CPM and other advertising metrics, so you can compare performance to competitors.
Get a tour of Triple Whale today to see how we help ecom advertisers visualize and increase performance.
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