Use our free CPM Calculator to assess the cost effectiveness and profitability of your media advertising campaign. Simply fill in below your known variables and we’ll instantly compute for you the missing variable.
Total cost: The total cost of your media advertising campaign.
CPM rate: CPM stands for cost per thousand impressions – it is the rate that you’ll be charged for a set of thousand views of your ad.
Ad impressions: The number of times your advertisement is viewed.
CPM stands for “cost per mille,” and “mille” is the latin word for “thousand” so CPM is commonly referred to as “cost per thousand.” CPM is a marketing term that measures the cost per thousand impressions, and it is the rate that you’ll be charged for a set of one thousand views of your advertisement.
For example, if you spent $100 on a Facebook ad and it got 15,000 impressions, the CPM would be $10.00, which is the price you paid for 1,000 Facebook impressions.
It’s very simple to calculate CPM. Shopify’s free CPM calculator does it for you, but you can also use the following formula:
X (campaign cost) / Y (ad impressions) = Z (result) x 1000 = $ CPM
When you are doing an ad campaign or making an ad budget, estimating and measuring the CPM of a campaign is important to understand its effectiveness across different media channels. The media channel with the lowest CPM is often more effective because it requires less cost to reach 1,000 audience members.
Shopify’s free CPM calculator is fast and easy to use, to get started:
The CPM calculator is a free tool Shopify offers to businesses. That means there is no cost to use it.