1. What is CPM?

CPM (Cost Per Mille) is an advertising metric that represents the cost of 1000 impressions. It's commonly used in digital marketing to measure the cost-effectiveness of advertising campaigns.

2. How Does the Calculator Work?

The calculator uses the CPM formula:

Where:

• \( Kostnad \) — Total cost in SEK
• \( Visningar \) — Total number of impressions

Explanation: The formula calculates the cost per thousand impressions by dividing the total cost by the number of impressions and multiplying by 1000.

3. Importance of CPM Calculation

Details: CPM is crucial for advertisers to compare the cost efficiency of different advertising channels and campaigns. It helps in budgeting and optimizing marketing strategies.

4. Using the Calculator

Tips: Enter the total cost in SEK and the total number of impressions. Both values must be valid (cost ≥ 0, impressions > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is a good CPM rate?
A: A good CPM rate varies by industry and platform. Generally, lower CPM indicates more cost-effective advertising.

Q2: How does CPM differ from CPC?
A: CPM measures cost per thousand impressions, while CPC (Cost Per Click) measures cost per individual click on an ad.

Q3: When should I use CPM pricing?
A: CPM is ideal for brand awareness campaigns where the goal is maximum visibility rather than direct conversions.

Q4: Are there limitations to CPM?
A: CPM doesn't measure engagement or conversion rates. It only measures the cost of impressions, not their effectiveness.

Q5: How can I lower my CPM?
A: Improve ad targeting, optimize ad creative, choose better time slots, and negotiate better rates with publishers.