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.
This is the RPM equation:
Click to enlarge
RPM = (Ad Revenue x 1000) / Actions
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 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