The cost per thousand or CPM is the payment method for advertising campaigns where the advertiser pays every time the ad gets 1000 views.
Depending on how much you have spent to win each individual view, Facebook will calculate your expense for a thousand of these.
CPM is determined by some factors:
- The popularity of the publisher
- The placement of the ad
- The type of ad
- The frequency of exposure
How is the cost per thousand calculated?
The formula to calculate CPM is:
CPM = CAMPAIGN COST / THOUSAND IMPRESSIONS
Example
Let's make an example:
If an advertiser invests 1000 euros in an advertising campaign and gets 10000 views, the calculation will be:
CPM = 1000 / 10000 = 0.10 euros
The cost per thousand views will be 0.10 euros
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