This **CPM calculator** calculates the cost of an online advertising campaign, CPM (cost per 1000 impressions) and the number of ad impressions you can get within the limits of your marketing budget. There is more on this topic below the form.

## How does this CPM calculator work?

This is a comprehensive tool designed to help marketing specialists that are preparing and estimating the budget required for specific online media campaigns since it allows to perform any of the following CPM calculations:

- In case the marketing expert wants to forecast the advertising campaign cost/budget (this field should be left blank), the following two variables should be given: Cost per 1000 imp and the desired number of ad impressions. Then based on the two figures the CPM calculator divides the number of impressions by 1000, and then the value obtained gets multiplied by the Cost per 1000 imp.
- If the Cost per 1000 imp (CPM) is the variable that needs to be calculated the other two fields should be provided: Advertising campaign budget and the number of ad impressions to be reached. To find the right figure, the formula requires that the Advertising campaign cost/budget to be divided by the value that results by dividing the No of ad impressions by 1000.
- In case the No. of ad impressions is the value to be determined the Advertising campaign cost and the Cost per 1000 impressions should be specified; while the steps behind the algorithm of this
*CPM calculator*are: divide the campaign budget by the Cost per 1000 imp (CPM), and then the value obtained gets multiplied by 1000.

## Example of 3 online advertising projections

Scenario 1: forecast the budget required

Cost per 1000 imp = $10

No. of ad impressions you want to reach = 500,000

Result:

The budget required is $5,000.

Scenario 2: estimate the cost per 1000 impressions an ad network offers

Campaign cost = $10,000

No. of ad impressions = 150,000

Result:

The CPM is $66.67.

Scenario 3: determine the number of ad impressions you can get within a budget

Campaign cost = $1,000

CPM = $4.5

Result:

The number of impression will be $222,222.

## What to take account of when setting up an online advertising project plan …

- Establish your target audience appropriately and figure out the best place to advertise;

- Communicate the audience to the suppliers you approach and check with them if they can prove how much their users match your profile. Eventually run a pilot;

- Select at least 3 suppliers/publishers/ad networks that can run your ads in the niche you are interested in;

- Choose the right banners formats and types and or unit links with advertisements;

- Choose the right format of the forms to be filled in by your potential customers as well as establishing the right/easiest steps to be followed by your prospective clients;

- Prepare customized banners for different devices (desktops, mobile phones, tablets);

- Nowadays more than a half of the internet traffic comes from smartphones;

- Set up KPI’s and measure the efficiency of the campaign in real time otherwise you may run it inappropriately and finally acknowledge that you spent your budget without achieving the results expected.

06 Apr, 2015 | 0 comments
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