CPM Calculation Formula:
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CPM (Cost Per Mille) represents the cost per thousand impressions in advertising, while CPP (Cost Per Point) represents the cost per rating point. This calculator converts CPP to CPM using the standard industry conversion factor.
The calculator uses the conversion formula:
Where:
Explanation: This conversion assumes that 10 rating points equal 1000 impressions (mille), making the conversion factor 10.
Details: Understanding the relationship between CPP and CPM is crucial for media planning, budget allocation, and comparing advertising efficiency across different media channels and markets.
Tips: Enter the Cost Per Point (CPP) value in dollars. The calculator will automatically compute the corresponding Cost Per Mille (CPM) value.
Q1: Why is the conversion factor 10?
A: The conversion factor of 10 is used because 10 rating points typically represent 1000 impressions (mille), making CPP × 10 = CPM.
Q2: Is this conversion factor universal?
A: While 10 is the standard conversion factor, it's important to note that specific market conditions or media buying agreements may use slightly different factors.
Q3: When should I use CPM vs CPP?
A: Use CPM when comparing costs across different media types, and CPP when evaluating cost efficiency within television advertising specifically.
Q4: What are typical CPM ranges?
A: CPM varies widely by market, medium, and audience, ranging from $2-$50+ for digital media and $5-$100+ for traditional media.
Q5: Can I convert CPM back to CPP?
A: Yes, to convert CPM to CPP, simply divide the CPM by 10 (CPP = CPM ÷ 10).