RPM Calculator (Revenue Per Thousand)


RPM stands for Revenue Cost Per Thousand (with M being the roman numeral for 1,000). It is generally used to calculate what you would have been paid if all your advertisers were using a CPM model.

The RPM price means that every time something happens 1,000 times, it will earn you that price. The something you sell can be anything – such as ad impressionspage impressions views etc.

We have provided a useful RPM Calculator below to work out your RPM as well as derive the number of impressions and cost you would need to get a specific RPM.

 

RPM Formula

This is the RPM equation:

RPM Equation used in our RPM Calculator

Click to enlarge

RPM = (Ad Revenue x 1000) / Actions

Alternate Equations

You can calculate RPM in the following ways (as well as by using our CPM calculator):

  • Ad Spend multiplied by 1000. Then divide the result by whatever actions you are measuring.
  • Ad Spend divided by whatever actions you are measuring. Then multiply the result by 1000.
  • Weird version: CTR multiplied by CPC multiplied by 1,000.

 

RPM Advice

RPM is a great way for website publishers to measure which ad campaigns are actually paying the most money for the space they are using. Advertisers have lots of different goals, however websites should be focussed on the bottom line. RPM provides a great way to track this.

An Impression RPM is useful to compare which advertisers are the most profitable.

A Page RPM is useful to work out if your advertising efforts in general are working out. This is how much each page is earning you. You can increase this by maximising clicks – which can generally be achieved by attracting better advertisers and optimising ad layout.

An Impression RPM is useful to compare different ad campaigns. This is how much each individual ad impression is earning you. You can increase this by maximising clicks, which again can generally be achieved by attracting better advertisers and optimising ad layout. However it is faster indicator of whether your ad layout is optimal, as if you have bad ad placements your Impression RPM will go down faster than your Page RPM.

 

Our RPM Calculator:

 

Find out more

 

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