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CPM (Cost Per 1,000 Impressions)
from Facebook
Metrics type
Actionable
Units of measure
Money
Direction
Less - better
Check frequency
Daily
Description
The average cost for 1,000 impressions.
Why it is important
CPM is a common metric used by the online advertising industry to gauge the cost-effectiveness of an ad campaign. It's often used to compare performance among different ad publishers and campaigns.
Formula
The amount spent / Impressions * 1,000
Calculation example
Suppose you're running a Facebook ad campaign, and you've spent a total of $800 on this campaign. During the campaign, your ad generated 100,000 impressions, which represents the total number of times your ad was shown to users.
CPM (Cost Per 1,000 Impressions) = (Amount Spent / Impressions) * 1,000
CPM (Cost Per 1,000 Impressions) = ($800 / 100,000) * 1,000
CPM (Cost Per 1,000 Impressions) = $8
CPM (Cost Per 1,000 Impressions) = (Amount Spent / Impressions) * 1,000
CPM (Cost Per 1,000 Impressions) = ($800 / 100,000) * 1,000
CPM (Cost Per 1,000 Impressions) = $8
Affected metrics
Impressions
Affecting metrics
Page Engagement
Video Average Play Time
Video Average Play Time
Connecting metrics
n/a
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Suggested slices for dashboards
by Overall Campaign
by Ad Set
by Individual Ad
by Campaign Objective
by Audience Segment
by Geographic
by Time Period
by Device Type
by Ad Placement
by Ad Set
by Individual Ad
by Campaign Objective
by Audience Segment
by Geographic
by Time Period
by Device Type
by Ad Placement
The revenue impact pathway
Available in JetMetrics Lite only
Questions to be Answered
1. What is the variation of 'CPM (Cost Per 1,000 Impressions)' across different ad campaigns, ad sets, or individual ads? Are there any campaigns or ads that have lower CPM values, and what tactics make them more cost-efficient?
2. Is there a link between 'CPM (Cost Per 1,000 Impressions)' and engagement metrics (e.g., clicks, conversions, shares)? Is there a correlation between ad exposure costs and user engagement?
3. What is the trend of 'CPM (Cost Per 1,000 Impressions)' over time? Are there any particular days, weeks, or months when CPM is notably higher or lower, and how can you optimize your budget allocation accordingly?
4. Can you segment the data to determine if certain audience demographics, interests, or locations lead to lower CPM (Cost Per 1,000 Impressions)? How can this information inform your targeting strategies?
5. How does the ad creative, messaging, or content type affect the 'CPM (Cost Per 1,000 Impressions)' metric? Are there any ad elements that encourage more cost-effective ad exposure?
6. Are there seasonal or time-specific patterns in the 'CPM (Cost Per 1,000 Impressions)' metric? Does the cost per 1,000 impressions vary on particular days or during certain times of the year, and how can you adjust your ad strategy accordingly?
7. Can you compare the 'CPM (Cost Per 1,000 Impressions)' metric across different ad placements on Facebook (e.g., in-feed, Stories, right column) to identify which placements are the most cost-effective for achieving ad exposure?
2. Is there a link between 'CPM (Cost Per 1,000 Impressions)' and engagement metrics (e.g., clicks, conversions, shares)? Is there a correlation between ad exposure costs and user engagement?
3. What is the trend of 'CPM (Cost Per 1,000 Impressions)' over time? Are there any particular days, weeks, or months when CPM is notably higher or lower, and how can you optimize your budget allocation accordingly?
4. Can you segment the data to determine if certain audience demographics, interests, or locations lead to lower CPM (Cost Per 1,000 Impressions)? How can this information inform your targeting strategies?
5. How does the ad creative, messaging, or content type affect the 'CPM (Cost Per 1,000 Impressions)' metric? Are there any ad elements that encourage more cost-effective ad exposure?
6. Are there seasonal or time-specific patterns in the 'CPM (Cost Per 1,000 Impressions)' metric? Does the cost per 1,000 impressions vary on particular days or during certain times of the year, and how can you adjust your ad strategy accordingly?
7. Can you compare the 'CPM (Cost Per 1,000 Impressions)' metric across different ad placements on Facebook (e.g., in-feed, Stories, right column) to identify which placements are the most cost-effective for achieving ad exposure?
Possible causes of worsening
Increased Competition
Rising competition in the e-commerce sector can lead to higher CPM as more advertisers vie for limited ad inventory, driving up the cost per impression.
Seasonal Demand
Seasonal fluctuations in e-commerce demand can lead to increased competition during peak times, resulting in higher CPM.
Explore more causes in full version of JetMetrics Lite
Rising competition in the e-commerce sector can lead to higher CPM as more advertisers vie for limited ad inventory, driving up the cost per impression.
Seasonal Demand
Seasonal fluctuations in e-commerce demand can lead to increased competition during peak times, resulting in higher CPM.
Explore more causes in full version of JetMetrics Lite
Tactics to improve this metric
Explore in JetMetrics Lite or Ask professionals in the Community
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