CPM Calculator

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Marketing managers use CPM calculator to determine how much to invest in their marketing campaigns. On the other hand, advertisers need CPM calculator to estimate the amount they will make based on the expected traffic capacity. In this post, we look at what is CPM calculator and explain why advertising agencies use CPM. Further, we will look at how marketers use the CPM calculator for OOH media. Lets jump right in.

What is CPM?

CPM is an advertising pricing model, used by the advertisers and publishers to estimate the cost of CPM advertising campaigns. In marketing, CPM represents Cost Per Thousand impressions, which represents the cost of one thousand ad impressions. CMP calculator represents a simplified division and multiplication and it is very easy to calculate, while it makes your marketing strategies much better.

Why do Advertising Agencies Use CPM?

Now that you already understand what CPM refers, it is important you understand why advertisers use CPM. Ideally, CPM can be profitable for advertisers as they make money just for placing adverts on different media. The CPM ad-pricing model is much easier, compared to using other advertisement pricing models. The advertisers can use CPM to calculate the expected revenue for placing a particular advertisement. Different estimations such as the average number of served impressions and daily active users count, can be combined with the specific ad network like CPM or eCPM so as to calculate how much profit they get by placing the ads in different media.

Therefore, it is essential for advertisers to know the CPM, and other useful statistics like IAP conversion and retention. Ultimately, the advertisers can ensure their advertisement model remains profitable. At the same time, CPM helps advertisers to understand whether to adjust the current marketing strategies or whether they need to adopt a different marketing approach to reach the desired goals.

It is also important to use CPM to help the advertisers in building the target audience persona, and to introduce the brand to the target audience. The approach can involve segmenting the market based on demographic groups like millenials or seniors, and placing ads on the targeted locations. Therefore, if you measure and compare CPM for different advertisement models, you can adjust your advertisement strategy accordingly. Ultimately, the advertiser is able to make critical decisions without necessarily spending a huge budget on marketing research. Overall, CPM is an important advertising model for modern marketers. As elaborated, you can make important decisions based on the cost per 1000 impressions.

How is CPM Calculated For In-Hand Advertising?

For In-Hand Advertising, calculating CPM just works in the same approach you use when calculating the CPM for OOH media. The advertiser has to determine the Campaign Reach and the campaign time, to come up with the estimated impressions. For instance, in the case of bar advertising, the estimated impressions can be 0.7M per month while the expected recall rate is 50%. For Coffee sleeves advertising, the estimated impressions can be 1.7 M per store, with expected recall rate at 70-80%, while for pizza box top advertising the estimated impressions can be 1.8 M per month.

Conclusion

As explained above, CPM is an important measure in the advertising industry. For effective ad deployment at an impressive CPM, contact Adzze. We have built capacity required to deploy successful in-hand advertising. Contact us today!