When planning a media campaign, the first things we consider are the location of our ad, how many people will see it, and how much will it cost.
In online advertising, CPM (Cost Per Mille) is the standard by which we calculate the cost of our advertising, telling Webmedia Advertising. CPM measures the price per thousand views and helps you to determine in advance how much your campaign is going to cost.
CPM, according to Webmedia, is the most common measurement used by advertisers to ensure they are purchasing the most effective advertising space on the basis of one thousand impressions (“Eyeballs”). To calculate CPM you simply consider the cost of the ad divided by the number of times it will be displayed, in batches of 1,000 (impressions).
Advertising Cost / Thousand impressions
For example, if a specific banner ad placement costs 10,000 USD and is estimated to reach 1,000,000,000 people = 0.00001, the CPM would be 0.00001 times 1,000 impressions = 0.01. In this way you can calculate the cost of any online ad.
To simplify things even further, if a banner is being sold at $10 CPM, it means you will pay $10 to display 1,000 banner views (1,000 people will see that banner).
CPM calculators can be found online to help calculate the costs associated with a given campaign, and are often used to compare different advertising mediums.
WMADV Webmedia – is a leading global online ad network. It delivers what’s important, high-quality products for high-quality advertisers.
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