These online calculators are all designed to make our life easier, you don’t need to worry your self sick about how to do your cpm calculation manually. You just use any of this tool and it will do it for you.
What is CPM
CPM which is cost per mile, is popular because it’s simple to use. By paying per thousand impressions, advertisers can compare their ad’s performance across many different sites, which is impossible with a model like CPC. Because CPM doesn’t vary based on the ad’s effectiveness, advertisers don’t have to worry about changing their bid if they find out that their ad is getting a lot of clicks or not.
However, as an advertiser’s ROI increases, the amount of traffic it takes to drive a single sale decreases. This is because as the ad’s effectiveness increases, the click-through rate increases, meaning fewer impressions are needed to drive the sale.
Because of this, CPM is often used by advertisers who want to maximize their reach and minimize their cost.
What Is CPL?
A CPL-based campaign is just like a CPM campaign, except that it pays for clicks, not impressions. Instead of being charged per impression, an advertiser is charged per click.
The main difference between CPC and CPL is that an advertiser’s payout is based on clicks, not impressions. For example, if a user clicked on your ad five times and made a purchase, you would only be charged five times. If the user clicked on your ad once and did not make a purchase, you would only be charged once.
This makes CPL a more appealing option for advertisers who want to track the conversion rate of their ads.
Because CPL is based on clicks, rather than impressions, an advertiser’s ROI will be higher than with a CPC campaign. The problem with this is that as the ROI increases, the amount of traffic it takes to drive a single conversion decreases.
This means that an advertiser may have to spend more money on CPL-based campaigns than on CPC-based campaigns. However, if the advertiser’s ROI is high enough, the increase in budget may be worth it.
One benefit of using CPL is that an advertiser doesn’t have to pay for all of the impressions that its ad appears on. Because an advertiser is only charged for each click, it’s possible to buy impressions that didn’t lead to a sale.
If an advertiser is using CPL-based campaigns, it’s also possible to buy a fixed number of impressions that will always be displayed to the user, even if there’s no click. This can help advertisers who don’t want to pay for impressions that lead to no sales.
However, CPL is more expensive than CPM because of the cost of each click.
What Is CPA?
CPA is the most sophisticated of the models, and the only one that requires users to click on an ad in order to generate a sale.
CPA campaigns are the most effective because they allow advertisers to measure the true conversion rate of their ads. In addition, CPA allows an advertiser to control exactly which ads are displayed, based on the ad’s ROI.
Because an advertiser is only paid when a user clicks on its ad, a high CPA campaign will only be profitable if the advertiser’s ad converts at a high rate.
Because an advertiser is only charged when a user clicks on its ad, CPA campaigns can be a lot of work. An advertiser must be able to identify which ads are most likely to lead to a sale, so it can bid for those ads.
Because CPA campaigns require users to click on an ad before they can make a purchase, an advertiser needs to think carefully about which offers it wants to pay to show to users.
It’s possible to show an ad for free, if you have a content network, for example. However, an advertiser may be better off spending money on a CPA campaign to reach users who are more likely to buy.
An advertiser can do this by bidding for the ads it wants to show, or by finding out which offers are the most effective, and then bidding to show them to users.
A benefit of using CPA is that it can generate very high returns on investment. Because an advertiser is only charged when a user clicks on its ad, it’s possible to use CPA campaigns to drive a lot of traffic.
One issue with CPA is that it’s often more difficult to measure the effectiveness of an ad. This is because CPA doesn’t take into account whether the user who clicked on the ad also bought something.
However, this is not necessarily a problem. A lot of CPA advertisers don’t have any way to track the conversion rate of their ads.
Because an advertiser is only charged when a user clicks on its ad, it’s possible to buy a fixed number of impressions that will always be displayed to the user, even if there’s no click. This can help advertisers who don’t want to pay for impressions that lead to no sales.
However, CPA campaigns are much more expensive than CPM or CPL campaigns, because of the cost of each click.
What Is CPC?
CPC stands for cost-per-click. This is one of the most basic forms of pay-per-click advertising.
An advertiser is only charged when a user clicks on its ad. This means that the advertiser is only paid when a user clicks on its ad.
Advertisers will only pay for impressions if they think that the ad is worth it. Because advertisers are only charged for each click, an advertiser can buy as many impressions as it wants, even if it doesn’t drive any sales.
Because CPC advertising is cheap, an advertiser may be willing to spend money on CPC-based campaigns even if the advertiser doesn’t have any way to measure the effectiveness of its ad.
However, CPC is a lot less effective than other forms of pay-per-click advertising.
How to calculate CPM rates online
Now there 3 fields, namely;
Campaign Cost
CPM
Ad impression
You need to enter two digits on the two fields then select calculate, you’ll now see the result.
For example, let’s say you want to find out how many ad impression a $270 can get you at the rate of $2 per thousand visits.
Goto Fordigitalace online CPM calculator.
Put $270 on the first field that says campaign cost,
Put $2 on the second field that say CPM. Leave the last field blank.
Come down and hit calculate, the total impression a budget of $270 at $2 CPM, will get you is 135,000 impressions. You can use this calculator to find the budget if you know how many total impressions and CPM. Same thing if you know the total impression and budget, you can then find CPM.
Let’s find the CPM of $270 with a 135,000 impressions.
Go back to Fordigitalace online CPM calculator.
Put in the total budget that’s $270, we don’t know the CPM so we skip it, and put in the total number of impression which is 135000.
We now have $2, as CPM per thousand visit.
