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Are You Calculating Your CPM?
CPM = Cost of AD / Circulation * 1000
CPM (cost per medium) is the cost of your advertising per 1000 potential people viewing the ad.
To calculating CPM you must know the following information:
Circulation of the medium: E.g. your advertisement reaching 1500 readers.
The Advertising Price for the advertisement: E.g. Adverting cost is $40
Example of advertising in an e-zine:
The price of the advertising is $40 for a classified ad, and the circulation reaches 1500 people.
To Calculate the CPM you take the cost of the ad $40. Divide it by the circulation (1500) e.g. $40/1500 subscribers that will give you .026666 then multiply that number by 1000 which equals $26.66
The CPM for the above example would be $26.66 in other words it cost you $26.66 for your ad to reach 1500 potential readers.
Once you get in the habit of calculating your CPM, you'll know if the advertising medium you are considering is a good deal or not, by comparing advertising rates based on CMP
Sell Also: Understanding Cost Per Medium (CPM)
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