# Cost per impression

Cost per impression (CPM) is a pricing model based on the number of impressions an ad receives. An impression is counted when an ad is served to a user, regardless of whether the user clicks on the ad. CPM is a popular pricing model because it allows advertisers to control how much they spend on advertising, while still allowing them to reach a large audience.

The cost per impression is calculated by dividing the cost of the ad by the number of impressions. For example, if an ad costs \$100 and it is served to 1,000 people, the cost per impression would be \$0.10.

CPM is often used in conjunction with other pricing models, such as cost per click (CPC) or cost per thousand impressions (CPM).

#### What is cost per impression example?

A CPM campaign is a type of advertising where you pay for each 1,000 impressions your ad receives. For example, if you have a CPM of \$10, that means you will pay \$10 for every 1,000 times your ad is shown.

CPM is commonly used for brand awareness campaigns, where the goal is to get your ad in front of as many people as possible, rather than driving clicks or conversions.

##### How do you calculate cost per impression?

There are a few different ways to calculate cost per impression (CPM), but the most common method is to simply take the total cost of the advertising campaign and divide it by the number of impressions. So, if a campaign cost \$1,000 and generated 100,000 impressions, the CPM would be \$10.

Another way to calculate CPM is to take the total cost of the advertising campaign and divide it by the number of potential customers reached. So, if a campaign cost \$1,000 and reached 1,000,000 people, the CPM would be \$1.

Finally, CPM can also be calculated by taking the total cost of the advertising campaign and divide it by the number of ad impressions served. So, if a campaign cost \$1,000 and generated 1,000,000 ad impressions, the CPM would be \$1. Is CPM cost per impression? No, CPM (cost per mille) is the cost of 1,000 impressions.

### What is a good CPM number?

A good CPM number will vary depending on your specific goals and objectives. However, a general rule of thumb is that a good CPM number is one that is lower than your average customer acquisition costs. For example, if your average customer acquisition costs are \$100, then a CPM number of \$50 would be considered good.

### What does a low CPM mean?

There are a few potential reasons for a low CPM:

1. You could be targeting a very specific audience, which means that there are fewer people who see your ad. This can be due to targeting options like location, demographics, interests, or behaviors.

2. Your ad may not be relevant to the people who see it. This could be because the ad copy is not interesting or because the image is not visually appealing.

3. Your ad could be placed on a website with low traffic. This means that there are fewer people who have the opportunity to see your ad.

4. You could be bidding too low. If you're not willing to pay enough for your ad, then it's less likely to be shown.