Average CPM

Average CPM

Average CPM helps you assess your overall ad efficiency across platforms. Here’s everything you need to know: what it is, why it matters, how to calculate it, and how to optimize it!

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What is Average CPM?

Average CPM is the total cost to deliver 1,000 ad impressions across all campaigns and channels. It represents a blended view of CPM across placements and helps you benchmark efficiency.

What is Average CPM?

Why Is Average CPM Important?

Average CPM allows marketers to monitor trends over time, compare platform efficiency, and control costs at scale. It’s especially useful for media planning and budget forecasting.

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How to Calculate Average CPM

Add the total cost of all campaigns and divide by total impressions (in thousands).

Average CPM = (Total Spend Across Campaigns ÷ Total Impressions) × 1,000

How to Calculate Average CPM

The Average CPM Formula:

Average CPM = (Total Spend Across Campaigns ÷ Total Impressions) × 1,000

Example of Average CPM in Action

If you spend $2,000 for 400,000 impressions across multiple platforms, your Average CPM is ($2,000 ÷ 400,000) × 1,000 = $5.

Optimize Your Average CPM with OWOX BI

Optimize Your Average CPM with OWOX BI

OWOX BI tracks and compares CPMs across all campaigns and platforms in real-time. Uncover high-cost outliers and shift budget toward lower-cost, higher-return impressions.

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Start your free trial today and gain full control over your Average CPM!

What Is a Good Average CPM?

What Is a Good Average CPM?

A good Average CPM depends on your industry and ad format, but anything under $8 is often considered efficient for display and awareness campaigns.

What Is a Bad Average CPM?

What Is a Bad Average CPM?

A rising Average CPM without improved outcomes can indicate wasted budget or market saturation.

Best Practices for Average CPM

Use Real-Time Performance Dashboards

Monitor CPM trends across campaigns to identify anomalies and shift budget efficiently.

Compare Platforms Side by Side

Analyze CPM by channel—social, display, video—to pinpoint where you're getting the best value.

Combine CPM with Post-Impression Metrics

Track not just how much you pay for views, but also how those views contribute to conversions or sales.

Optimize Your Average CPM with OWOX BI

Common Mistakes to Avoid with Average CPM

Don’t rely on averages alone—dig into segmented data to understand where budget inefficiencies hide.

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Read About Average CPM on Our Blog

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