# FREE CPM Calculator – Easy To Use (Calculate Cost Per Mile)

## How do you calculate CPM?

Calculating CPM, which stands for Cost Per Mile (Mile is Latin for “thousand”), can help you understand your expenses in reaching potential customers. You can improve your advertisements. Let’s go through how you can do the actual calculation.

### CPM Formula

CPM = (Total Cost of Advertising ÷ Total Impressions) x 1000

Here’s a breakdown of the formula in plain terms:

• Total Cost of Advertising: This is how much money you’ve spent on your advertising campaign. It includes everything like creating the ad, where you put it, and any extra costs.
• Total Impressions: Impressions are how many times your ad is seen by people. If one person sees your ad three times, that counts as three impressions.
• x 1000: We use this part to make the result easier to understand. It’s a way to say how much it costs for one thousand impressions.

Let’s use an example to make this clear. Imagine you spent \$1,000 on a YouTube ad campaign, and it got 500,000 impressions. To calculate the CPM:

CPM = (\$1,000 ÷ 500,000) x 1000 = \$2 CPM

So, in this case, your Cost Per Mile (CPM) is \$2, which means it costs \$2 to show your ad to a thousand people.

## What is a typical CPM?

The typical CPM can vary a lot based on where and how you advertise. However, here’s a general idea of what CPMs look like:

• Display Ads: These are the ads you see on websites. Their CPM can range from 25 cents to \$5. It depends on how popular the website is and what your ad is about. The average is around \$2.80.
• YouTube: CPMs on YouTube can be from 25 cents to \$4, on average. But if your channel is famous or your ad is super targeted, you might get more.
• Social Media: Ads on platforms like Facebook and Instagram usually have CPMs between \$5 and \$10. But this can change based on who you’re targeting and how good your ad is.
• Video Streaming Services: If you’re advertising on services like Hulu or Netflix, CPMs can be way higher, often being \$10 to \$30.

## How to use the eComBusinessHub CPM Calculator

Using this CPM calculator of EcomBusinesshub can make your life easier when dealing with all these numbers. Here’s a simple guide on how to use it:

1. Input Your Data: See the boxes that say “Enter Total Campaign Cost (\$)” and “Enter Ad Impressions”? Type in these details accurately.
2. Hit Calculate: After you’ve put in the numbers, click the “Calculate” button. The calculator will do its thing and give you your CPM.