CPM

What is CPM?
“Cost Per Mille” or colloquially “Cost Per Thousand Impressions.” Essentially, CPM is how much you’re spending for each 1,000 impressions.

Where should I find CPM?
The formula for calculating CPM would be Ad Spend divided by Impressions, and then multiplied by 1,000. (If you spend $10 and get 2,000 impressions, you would divide 10 by 2,000 to get 0.005. Multiplying by 1,000 would then tell you that you spent $5 for every 1,000 impressions).

Why is CPM Important?
Because it breaks down your expenditures by impressions, it is a great metric for measuring the cost-effectiveness of the campaign strategy implemented. A lower CPM would indicate that you’re reaching a wider audience for less money, signalling that you may want to lean into that strategy more.

How to improve your CPM metric?
Listen and adhere to your analysis. There’s no shame in finding out that your strategy isn’t cost effective, it just means that you’ve found one more area that you can change and grow from. By comparing the efficiency of differing strategies, you’ll start to read into what’s resonating more with your audience.

How frequently should I track this?
CPM might be one metric to keep a little closer eye on considering it’s your basis for understanding your cost efficiency. Track your CPM daily, or at least once a week to allow yourself to quickly identify any significant fluctuations to your campaign strategy.