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Frequently Asked Questions

What is CPM and how do you calculate it?

How to Calculate CPM. CPM is calculated by taking the cost of the advertising and dividing by the total number of impressions, then multiplying the total by 1000 (CPM = cost/impressions x 1000). More commonly, a CPM rate is set by a platform for its advertising space and used to calculate the total cost of an ad campaign.

How do you figure out your net income?

The net income formula is calculated by subtracting total expenses from total revenues. Many different textbooks break the expenses down into subcategories like cost of goods sold, operating expenses, interest, and taxes, but it doesn’t matter. All revenues and all expenses are used in this formula.

How do you calculate cost per impression?

One impression is essentially a potential customer viewing an ad. CPM is calculated by taking the cost of the advertising and dividing by the total number of impressions, then multiplying the total by 1000 (CPM = cost/impressions x 1000).

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