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How to know the maximum CPM

by Aleksandar Dimov
10 replies
  • CRO
    • |
Hello Everyone

I have this situation

My client want to know the maximum CPM for those output results.

Max CPA = 300
Convertion Rate = 5%
CTR = 8%

Those are estimated results and he asks me if it is possible to know the maximum CPM only with those outputs? Can anyone recommend me a way how to calculate the CPM based on those outputs?

Thanks in advance.
#cpm #maximum
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  • Profile picture of the author AshleyRivera
    CPM is calculated by taking the cost of advertising and dividing by the total amount of impressions then multiplying the total by 1000.
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  • Profile picture of the author Adstargets
    Is very difficult to say you are getting the maximum CPM or an Ad network is paying you maximum CPM
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  • Profile picture of the author electricguitar
    Banned
    If you want to calculate CPM, there are so many methods available. Here i have given few things you should do while calculating you CPM.

    First, you will need to determine how many impressions your ad will recieve, or how many times your ad will be viewed. You will also need to determine the price of the ad.
    You will then need to divide your total number of impressions, or ad views, by 1,000. For example, if your ad is viewed 30,000 times, when you divide that number by 1,000, the result is 30.

    You will then need to divide the cost of your ad, determined in the first step, by the number you calculated by dividing your ad views by 1,000 in the second step, to end up with your CPM value.

    In short, the formula for calculating your CPM is ad cost divided by the result of dividing your impressions by 1,000.
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  • Profile picture of the author acnescars
    Maximum CPM can be calculated in two different ways:
    1) if you have in mind a Maximum CPA, multiply conversion rate by Maximum CPA.
    2) if you have in mind a Maximum CPM, divide Maximum CPM by 1000, and then divide the result by CTR.
    These are the formulas to calculate Maximum CPC:

    Maximum CPC = Maximum CPM / 1000
    CTR
    Maximum CPC = Conversion Rate x Maximum CPA
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  • Profile picture of the author Samsungtab
    Thanks for sharing this calculation method. This is really nice and useful.
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  • Profile picture of the author mixergrinder
    This is really a simple method to calculate the CPM .. Surly going to try this method out.
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  • Profile picture of the author portablesys
    Really a great methods to calculate the CPM. I have tried the first method which have been explained above and it is giving me the exact result.
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  • Profile picture of the author poweredspeaker
    CPM is very important in optimization. so the calculatating the correct CPM is must.
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  • Profile picture of the author Careyrussell
    There are so many CPM calculator available online from that you can choose one for you to calculate your maximum CPM. Calculating your CPM is really very important thing here.
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  • Profile picture of the author Sevan Rudolf
    These are the ways to calculate maximum CPM.

    -Determine the campaign budget. An ad campaign is used to convey an idea or product to an audience. If you decide you have 10,000 dollars to spend on advertising, this is half of the data needed for calculating the CPM.

    -Determine the total number of impressions. In order to calculate the cost of one thousand impressions, you need the total number of desired impressions.

    -Do the math. The cost of the campaign divided by number of desired impressions, multiplied by 1000.
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