CPM (cost per thousand impressions)

The cost per thousand impressions (CPM), also known as cost per thousand or cost per mille, refers to the cost paid to receive one thousand impacts or impressions in your advertising campaigns or in email marketing campaigns.

With the CPM formula you guarantee to reach a very wide audience and improve the general recognition of your company, improving your branding and it is a good account format, you are starting a business.

More clearly, cost per thousand impressions (CPM) is the price you will pay to show the same ad 1,000 times. For example, if we assign a value of 3 euros to the CPM of an ad and 45,000 impressions are produced, the cost per impression of that campaign would be 135 euros.

1. How to calculate CPM

We can calculate CPM using two formulas:

CPM = (Cost / Impressions) x 1,000

However, we can also use the following formula:

CPM = (CTR x CPC) x 1.000

2. How to optimize CPM in Google Ads

To optimize your Google Ads spend across based campaigns and get the most benefit at the lowest cost, you can use these tips:

– Pay attention to frequency: you must be especially careful with how often you impact your advertising, this can skyrocket costs and affect the success of your campaign.

– Add a Call to Action: you must promote and encourage impacted people to participate in what you propose/offer, an appropriate copywriting strategy will achieve this goal.

– Segment correctly: try to reach your target audience so that the relevance of the campaign increases.

– It is better to use videos and images: you have to attract the attention of your target audience, for this you must always use videos and images that attract attention.