How To Calculate CPM

Last Updated on August 16, 2023 by Jake Sheridan

In this tutorial, you will learn how to calculate the CPM or cost per mille in Google Sheets.

How To Calculate CPM (Cost Per Mille) in Google Sheets

Are you running a digital marketing campaign? A good metric to know is how much it costs to reach 1,000 people with your ad. In marketing, we call this metric the cost per mille or CPM.

We can calculate the CPM by dividing the total cost of the campaign by the total number of impressions multiplied by 1,000. For example, if the total cost to run a campaign is $500, and it receives 2000 impressions, the CPM for the ad would be (500/2000 * 1000) or $250.

Knowing your campaign’s CPM can help predict your return on investment (ROI) of a campaign and make adjustments to your ad budget accordingly. Experiencing a low CPM may also indicate that you might have to change your marketing strategy or content to increase engagement with your audience.

In this guide, we will show you how to calculate your CPM in Google Sheets.

How To Calculate Impressions with Cost Per Mille (CPM) in Google Sheets

Here’s how to calculate the cost of a thousand ad impressions for your campaign using Google Sheets.

Step 1

First, indicate the total amount spent on the campaign.

In our example, we’ve spent a total of $500 on a single campaign.

Step 2

Next, determine the number of impressions gained from the campaign.

In our sample campaign, the ad analytics reveal that our ad has made a total of 3,450 impressions.

Step 3

To find the CPM or cost per mille, you must divide the total ad spend by the number of impressions and multiply the result by 1000.

Our sample campaign has a cost per mille of $144.93. In other words, it costs $144.83 to gain a thousand impressions for our campaign.

Summary

This guide should be everything you need to calculate the CPM (Cost-per-mille) of an online campaign.

You may make a copy of this example spreadsheet to test it out on your own.