How is CPI calculated?

It is simple to find out how much your ad impressions cost. The easy-to-follow cost-per-impression formula goes:

CPI = Total Ad Cost / Total Impressions

• Total Ad Cost: The total amount you spend on your advertising campaign.
• Total Impressions: The total number of times your ad is displayed.

If you were trying to determine the average CPM, you would multiply that by 1,000.

Here is the cost per impression formula in action; If you spend $100 on an ad campaign and your ad receives 10,000 impressions, your CPI would be $0.01 (100 / 10,000). This means you paid one cent every time your ad was shown.

The average cost per a single impression is often cents. That’s why CPM is typically used to determine the cost per thousand impressions.