Media Planning & Buying Calculators


Cost Per Thousand (CPM)

Cost Per Thousand (CPM) allows a media planner to compare media based on two variables: audience and cost. CPM is used as a comparative device. The lowest cost per thousand medium is the most efficient, all other variables being equal. Oftentimes the media with the lowest cost per thousand are selected, but not always. CPM may be computed for a printed page or broadcast time, and the audience base may be either circulation, homes reached, readers, or number of audience members of any kind of demographic or product usage classification.

  • 1. For print media (when audience data are not available):

    CPM = Cost of 1 ad x 1000
    Circulation

    Because many print media do not have audience research data, this formula is often used.


  • 2. For print media (when audience data is available):

    CPM = Cost of 1 ad x 1000
    Number of prospects reached


  • 3. For broadcast media (based on homes reached by a given program or time period):

    CPM = Cost of 1 unit of time (commercial) x 1000
    Number of homes reached by
    a given program or time period


  • 4. For broadcast media (when audience data is available):

    CPM = Cost of 1 unit of time (commercial) x 1000
    Number of prospects reached by
    a given program or time period


  • 5. For newspaper (when cost of ad is known):

    CPM = Cost of ad x 1000
    Circulation


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