In my previous post i talked about What is CPM or Cost Per Impression. Here’s a Quick recap about CPM ”CPM is an abbreviated term which is used in online advertising world which stands for “Cost Per 1000Impressions”. It defines a cost which an advertiser has to pay for each 1000 impression of his advertisement campaign.”
Today we will talk about RPM or Revenue Per 1000 Impression. Just like CPM, RPM is an abbreviated term too. RPM represents the earning (estimated earnings) you will get for every 1000 impression. Both CPM and RPM is similar but CPM is usually measured by advertiser and RPM by publisher. Where CPM is the cost of ads for 1000 ad impression to advertiser, RPM is the revenue for publisher from 1000 impressions.
RPM is calculated by dividing your possible estimated earnings by the number of page views, impressions, or queries you received, which is then multiplied by 1000.
Formula to Calculate RPM:
RPM = (Estimated earnings / Number of page views) * 1000
- If you earned an estimated $0.50 from 40 page views, then your page RPM would equal ($0.50 / 40) * 1000, or $12.50.
- If you earned an estimated $100 from 30,000 ad impressions, your ad RPM would equal ($100 / 30,000) * 1000, or $3.33.