CPM Calculator: How to calculate Cost Per Mile

What is CPM?

Cost per mile (CPM), also known as cost per thousand, is a metric commonly used in marketing and advertising and refers to the total cost incurred to reach one thousand potential customers or impressions. It plays a crucial role in making informed decisions about better allocating your resources and budget and optimizing your campaigns for maximum impact.

How to use the CPM calculator

To calculate the cost per mile, simply enter the total amount of money that you have spent on your marketing or ad campaign, followed by the total number of impressions the campaign has received. The calculator will provide you with the cost per mile of your campaign.

CPM formula

CPM = Total campaign spend ÷ Number of impressions × 1,000

Here, the total campaign spend is the total amount of money spent on your campaign, and the number of impressions is the total number of times that campaign was viewed.

Understanding the CPM result

CPM gives you an insight into the efficiency and cost-effectiveness of your marketing efforts. A lower CPM indicates that you are reaching a larger audience at a lower cost, highlighting a more efficient campaign. Conversely, a higher CPM suggests that your marketing campaigns are costly, and you might want to make adjustments to optimize spending.

When to calculate CPM

Calculating CPM is essential to gauge not only the effectiveness of your marketing or advertising campaigns but also to understand the kind of returns you’re getting with the amount of investment you’re putting in. You must calculate CPM when you’re running any kind of marketing campaign including an ad campaign or you want to compare the cost of two different marketing channels or campaigns to understand which one will be more cost-effective.