Calculate the CPM for your advertising crusade.
When it comes to operating a line, it is determining to understand how cogent your advertising crusade is in reaching your thing audience. One habit To gauge that effectiveness is to calculate price per thousand, otherwise avowed as CPM. (M is the Roman numeral for 1000.) This can be used for matters such as measuring website advertising impressions or calculating the valuation for a television commercial to arrive 1,000 homes.
Instructions
1. Accept the equation. The CPM equation reads:
Note that if the commercial ran two times, you would multiply your impressions by two, if it ran three times, by three, and so on.3. Calculate the CPM equation. Using the example, the calculation would be:
And the 1,000 represents the amount of people to arrive.
2. Plug the numbers into the equation. For instance, you spent $500,000 to shoot a commercial that played in three million homes during the course of a sporting event. The commercial aired only once. The equation would read:
$500,000 / (3 Million / 1,000) = CPM
Value / (Total Impressions / 1,000) = CPMIn this equation cost represents the total amount of money that was spent. The total impressions is the amount of people you reached during a given time frame.
$500,000 / 3,000 = $166.67
This means that it cost $167.67 to arrive each 1,000-person advertising pool.
