AdvertiseMint

Grow your business with Facebook, Instagram & TikTok advertising. Let's talk 844-236-4686.

  • Home
  • Services
    • Facebook Advertising Agency
    • Advertising Agency for Amazon
    • TikTok Advertising Agency
    • Google Ads Advertising Agency
    • Instagram Advertising Agency
    • Snapchat Advertising Agency
    • LinkedIn Advertising Agency
    • Spotify Advertising Agency
    • Pinterest Advertising Agency
    • YouTube Advertising Agency
  • Pricing
  • Blog
  • About
  • Contact
  • 844-236-4686
  • Get Started
You are here: Home / CM Tooltip Glossary Pro / Cost per 1,000 People Reached

April 6, 2016

Cost per 1,000 People Reached

What is the Cost Per 1,000 People Reached Metric?

This metric, otherwise known as CPM, is utilized to conceptualize the average price an advertiser spent on every 1,000 people their ad campaign reached. It is calculated by taking the amount you spent on your ad campaign, dividing it by the amount of users you reached (a metric that Facebook estimates based off of the real data sample that it has), and then multiplying it by 1,000.

Keep in mind, this has nothing to do with clicks or engagement, however, a higher CPM can be an indicator of more clicks and engagement than otherwise.

CPM is a key part of analyzing and strategizing ad campaigns. No marketing toolkit is complete without it. It is similar to the CPC metric, but is analyzed on a much larger scale. It is up to you and your time to decide which one you may want to give more weight to.

How is Reach Used on Facebook?

Reach does not necessarily mean interaction. However, reach is the precursor to interaction. That is why it is so important to measure. Without reach or interaction, we will have no sales which is the lifeblood of any ad campaign, or really even any business. 

Reach is therefore defined as something that was seen by a member of your target audience. Even if they didn’t click on your ad or page, even just seeing your product or name has made an imprint in their psyche that can not be understated. If they find themselves in need of a similar product as to what you are offering, your name will be one of the first that come up. Therefore, it is beneficial to spend money on an ad campaign to get a larger reach because you just increased your pool of potential leads.

Plus, it has value over impressions because it only counts unique views giving you a better idea of your true audience and the data that goes alongside them.

Carlos Muza / Unsplash

Why Should I Use This Metric Over Others?

This is a great way to look at cost-efficiency especially as you line up each ratio for your different ad campaigns. If your CPM for one campaign is looking shoddy, then that is a sign that something went wrong there. Whether it was the ad itself or how you utilized the Facebook ad auction, something has to change. Maybe place a higher maximum bid or target a different audience next time.

Comments

comments

Related Articles:
  • Cost per 1,000 People Reached- Facebook

Article by Natalie Baumann

Complete Guide to Facebook Targeting

Download our FREE Facebook guide with over 850 ad targeting options.

  • This field is for validation purposes and should be left unchanged.

Speak with an Advertising Specialist

Want to learn more about what advertising platforms are best for growing your business.

Schedule a FREE call with our experts. 

Ad Targeting Infographics

  • Amazon DSP Ad Targeting
  • Facebook Ad Targeting 
  • Hidden Facebook Ad Targeting
  • LinkedIn Ad Targeting
  • Snapchat Ad Targeting
  • Digital Ad Platform Policies
Hear the Audiobook FREE on Audible

Browse by Platform

  • Facebook
  • TikTok
  • Instagram
  • Twitter
  • YouTube
  • LinkedIn
  • Snapchat
  • Pinterest
  • Amazon
  • Google

Popular Articles

(Updated 2021) How to View What Your Facebook Profile Looks Like to Others

How to Make Money on TikTok

New Instagram Sorting Feature Shows Who Appears on Your Feed the Most

12 Ways to Become TikTok Famous

Here’s Where Instagram Keeps All the Posts You Liked

How to Hide Your Facebook Post from a Specific Person

Instagram’s Warning Notification Gives At-Risk Accounts a Second Chance

6 Important Marketing Theories and How to Apply Them on Social Media Campaigns

35 Banned and Restricted Products You Can’t Advertise on Facebook

The Best Time to Post on TikTok, According to Data

AdvertiseMint

  • Home
  • About
  • Careers
  • Blog
  • Definitions
  • Programs
  • FAQ
  • Press
  • Phishing Scam
  • Sitemap

NEWSLETTER

Get expert insights and latest news in digital advertising every week

NEWSLETTER

Certifications



advertisemint google partner     

7080 Hollywood Blvd, Hollywood, CA 90028       |       844-236-4686

Facebook Advertising | Instagram Advertising | Google Advertising | Amazon Advertising | Pinterest Advertising | Tiktok Advertising
Terms and Conditions | Privacy Policy | Cookie Policy
© 2021 AdvertiseMint All Rights Reserved.