What are CPM and how to calculate CPC, CPM and Impressions

In general, implementing a digital marketing strategy requires in-depth data research. An impression is the number of times your ad content has been served, whether it gets a click or just leaves it.

Meanwhile, many metrics can be studied to get a satisfying engagement for a brand. Not only for brands but also for personal social media users, of course, want great engagement for good account visibility. In essence, by knowing and studying these metrics, you can decide what kind of strategy to follow.

Before discussing which is more important about impressions, for those of you who don’t really understand what impressions are, their functions, types and how to calculate impressions, we will review them in the article below.


1 What are Impressions?
2 Impression Function
3 Types of Impressions Are
4 How to Calculate Impressions?
4.1 1. Click-through Rate
4.2 2. Cost per Mile (CPM)

What are Impressions?

Impressions are impressions on advertisements that appear on websites or blogs which do not care whether the advertisements on the website are clicked or not. For example, let’s say if your ad appears 500 times on the audience’s screen, then the total impression for that ad is 500.

According to Google, Impressions can be interpreted as impressions that appear from search results through the URL entered by the audience, then Google will record each impression as an impression.

Every time your ad appears on a google search or a website that is in the Google network, the impression of the ad will continue to grow.

Impressions can be useful when you want to know whether your ad impressions have reached the target based on the content or keywords you apply.

Not only that, impressions can help find out if there is something wrong with your ad. If your ad reaches a lot of people but no conversions have occurred such as an increase in followers, likes, and so on, then you have to improve it again in terms of the content on the ad.

Impression Function

After we understand what impressions are, you must also be able to guess what the function of impressions is. The main function of impressions is that they can help and measure the number of people who have viewed web pages, posts, and ads, even when the audience has not clicked, commented or engaged with the ad.

It should also be understood that impressions are important for an advertiser or advertiser to be able to understand how many impressions are generated by cost per mille (CPM) ads in order to understand the cost of a campaign or ad serving.

Then, it can also really help marketers (marketers) in generating a number of metrics for other marketing. Like the Click-Through Rate (CTR) or Click-Through-Rate (CTR).

These metrics can be used to calculate the effectiveness of ad impressions, where they need an accurate number of impressions in order to meet the target correctly.

Types of Impressions Are

If we already know what an impression is, and its function. An impression has several types that need to be known, where each type can have differences according to their respective viewing conditions. The types of impressions are as follows:

  • Page impressions are views that can be counted after page load.
  • Ad impressions are impressions that occur when an ad is loaded on a web page.
  • General impressions are ad impressions from above the fold or views to be seen in general.
  • Social media impressions are impressions that occur when posts are published by other social media users.
  • Advertising impressions are meant to be interpreted as impressions in online advertising.

How to Calculate Impression?

It should be noted that now we can see how important these impressions are in terms of how they are calculated. How to calculate impressions include the following:

1. Click-through Rate

CTR is the percentage (%) of the audience who clicked on the content compared to those who saw it.

If impressions are high but CTR is low, it’s a sign that the audience viewing the content isn’t interested in clicking and finding out more about your offer. If so, then you should re-evaluate the content or target audience.

The CTR formula is as follows:

CTR formula

2. Cost per Mile (CPM)

CPM means the average cost incurred per 1000 times the ad is viewed.

If the CPM is IDR 5,000, then for every 1000 impressions you will be charged IDR 5,000. Regular CPM can be used for brand awareness campaigns. The lower the CPM, the better.

The CPM formula is as follows:

What are Impressions and how to calculate CPC, CPM and Impressions

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