#CPM #CostperMille
CPM, or Cost Per Mille, is a key metric in the world of digital marketing and advertising. It is used to evaluate the cost-effectiveness of a campaign and is usually calculated by dividing the total cost of the campaign by the number of impressions (reach), then multiplying it by 1,000.
In our platform, we calculate CPM based on the pricing that is set for each creator and the reach that was achieved. Here is the formula we use: CPM = (Creator’s price / Reach) x 1,000. In other words, if a creator’s price is set at $200 and their content reaches 50,000 people, the CPM for that campaign will be ($200 / 50,000) x 1000 = $4. This means that for every thousand impressions, the cost is $4.
Please note that if a flat rate price is set for a creator for the entire campaign, the more content that is posted, the lower the CPM will be. This is because the same total cost is being spread over a larger number of impressions, thereby reducing the cost per thousand impressions.
Remember, the CPM is just a benchmark to understand the cost-effectiveness of your campaign. It’s important to also consider other metrics such as engagement rate, click-through rate, and conversion rate, to get a full picture of your campaign’s performance.
Please feel free to reach out if you need more information or further assistance in understanding campaign metrics.