---
title: "Calculate CPM – formula & information about the cost per thousand impressions"
description: "CPM shows what it costs to generate 1,000 impressions and makes media prices easier to compare. Learn the formula, its main uses and limitations, and how to include CPM in campaign planning."
canonical: https://www.adspecialist.de/en/blog/tkp-berechnen-formel-infos-zum-tausenderkontaktpreis/
last-updated: 2026-06-10T22:04:23
---

# Calculate CPM – formula & information about the cost per thousand impressions

> CPM shows what it costs to generate 1,000 impressions and makes media prices easier to compare. Learn the formula, its main uses and limitations, and how to include CPM in campaign planning.

Kanonische URL: https://www.adspecialist.de/en/blog/tkp-berechnen-formel-infos-zum-tausenderkontaktpreis/

## Definition CPM<br />

## **Abbreviation & definition simply explained: What is TKP?**

CPM, or cost per thousand impressions, is a metric used to compare the cost of reaching 1,000 people with an advertising campaign. It is widely used in media planning and advertising.

You can use the CPM to determine how much it will cost you if you reach 1,000 visitors/people in your audience with an advertising medium or advertising campaign. A frequently used synonym for the cost per thousand impressions (CPM) is Cost-Per-Mille (CPM). This metric is mainly used in English-speaking countries. But TAI (Thousand Ad Impressions) is also known.

Depending on the type of advertising, the name for displaying advertisements may differ. “Visual contact” is referred to in print advertising, on TV and in online marketing. On the radio, however, we speak of “listening contact”.

Would you like to calculate your CPM? There is a simple formula for this. You'll find out how to use them in the next paragraph!

## Calculate CPM<br />

## **CPM formula – this is how you can calculate the cost per thousand impressions**

**All you need to calculate CPM are a few simple metrics. These include:**

- Costs for an advertising campaign
- Number of contacts/reach achieved (including impressions)

**The following formula is required to calculate the CPM:**

CPM (cost per thousand impressions) = (cost of the advertising campaign / number of contacts reached) x 1,000

## CPM sample calculation

## **Calculate CPM – example for determination**

**Here is an example of the CPM calculation:**

(15,000 euros / 250,000 impressions) x 1,000 = 60 euros

In the CPM calculation example above, the costs for an advertising campaign are 15,000 euros. We also reached 250,000 contacts and achieved 250,000 impressions with the campaign. If we use both metrics in the formula, this results in costs of 60 euros per 1,000 contacts achieved.

**By the way:** If you want to calculate the CPM, you don't even have to use the calculator yourself. You can find lots of CPM calculators on the Internet that you can use to calculate and determine your own CPM with just a few clicks. Here you even get helpful additional functions, for example to compare the costs of two campaigns.

## Calculate the costs of an advertising campaign<br />

## **Additionally: Calculate costs for an advertising campaign using the CPM**

Not only can you calculate the CPM, but you can also use the per-contact price to determine the cost of an advertising campaign. To do this you simply have to change the formula:

Cost of an advertising campaign = (50 euros x 200,000 impressions) / 1,000 = 10,000 euros

In the example above, we multiply the CPM cost of an advertising campaign by the number of impressions. We then divide the interim result by 1,000 and get the final result of 10,000 euros in total costs.

## Advantages and disadvantages of the TKP<br />

## **Advantages and disadvantages of the CPM (cost per thousand impressions)**

In the last paragraph we learned how to calculate the CPM. But what advantages and disadvantages does TKP marketing actually have?

### **Advantages of the TKP**

- **Comparison of advertising media:** You can calculate the CPM for every advertising medium (e.g. online, radio, print) and every area. Accordingly, it is possible to compare the channels and determine the most cost-effective media.
- **Planning the budget:** If you have a fixed media budget, CPM helps estimate how much reach that budget can buy.
- **Easy measurement:** The CPM is easy to measure - so you can easily track performance and success and see whether an advertising campaign is worthwhile - even in the long term.
- **Controlling costs:** Always keep an eye on your advertising campaigns and check costs at regular intervals. This means you can control them and intervene in a timely manner.
- **Focus on audiences:** Do you have several audiences in your sights? You can calculate the CPM for each individual audience. This means you know how well advertising is received by the respective audience and what is most worth focusing on in the future.<br />

### **Disadvantages of the TKP**

- **Low significance for niches:** If you are active in a specific niche and are targeting a specific audience, calculating the CPM does not always provide meaningful results.
- **Not helpful for all campaigns:** There are campaigns for which it is difficult to determine metrics such as impressions. Accordingly, it is difficult for you to calculate the CPM.
- **Quality < Quantity:** Calculating CPM is primarily about quantity, not quality. In some cases it is difficult to find out how effective a particular advertisement really is.
- **Missing conversions:** How many advertising viewers actually converted as a result of an advertising campaign (e.g. ordering in the shop)? Especially with advertising media in the offline area (e.g. in magazines), it is not possible to determine conversions for a campaign.

Especially with the last point we see that it is not always or only very difficult to say how effective and successful certain advertising campaigns actually are. This particularly applies to advertising media such as radio, TV and print.

Things look different in the online area. Here you can calculate the CPM and include other important metrics such as conversions. For example, you are able to calculate TikTok's CPM and see how many users have subscribed to your newsletter. If you do the same with an advertising campaign on Instagram and compare the two, you will find out which campaign is ultimately more efficient.

## Net and gross reach<br />

## **Difference between net and gross range of the CPM**

When calculating CPM, distinguish between net and gross reach. The two terms describe how an audience is counted.

**Net range**

- The net reach of the thousand-contact price only includes unique/unique contacts who perceive an advertisement. Double perceptions – when a person sees or hears an advertisement several times – are not taken into account.
- The net reach is particularly meaningful and provides information about how many people have actually seen or heard of an advertising campaign.

**Gross range**

- The gross reach, on the other hand, refers to the total number of all people who perceive an advertisement - including double perceptions. This creates double perceptions when a contact sees or hears an advertisement more than once. They are included in the CPM calculation.
- This includes all people who perceive advertising – including, for example, those who read or hear an advertisement several times.

## CPM in online marketing<br />

## **Use of the TKP in online marketing**

You can also calculate the **CPM** in online marketing (e.g. as [Influencer](/en/)) - precise, targeted and fully automatic! Here it is possible to include any criteria and points that are helpful and meaningful when determining the cost per thousand impressions.

We have deepened the topic specifically for creator collaborations: In the [CPM in Influencer Marketing](/en/blog/tkp-berechnen-so-sparst-du-bei-influencer-kampagnen/) guide, we show benchmarks per platform and how you can use them to negotiate prices. And you can read about which overall budgets are realistic in the overview of [Influencer Marketing Costs](/en/blog/influencer-marketing-kosten-so-verhandelst-du-den-tkp-richtig/).

This includes demographic characteristics, regions and keywords. At Ad Specialist, we can calculate your CPM and use data analysis to identify what works and where performance can improve.

Our goal is for your brand to continually grow and be taken to the next level. Together we will scale your marketing and make you successful! Do you have any questions about it? Talk to us!

[**GET IN TOUCH**](/en/kontakt/)

## Frequently asked questions and answers about calculating CPM

### What does the TKP say?

The CPM, i.e. cost per thousand impressions, indicates how much it costs to reach 1,000 people with an advertising message. It makes placements on different platforms and with different creators comparable, regardless of whether someone delivers 20,000 or 500,000 views. This gives you an objective basis for evaluating influencer prices and conducting negotiations based on data.

### How high is a good CPM?

It depends on the platform, but there are clear benchmarks. Instagram Stories: around 30 euros. YouTube integrations: 30 to 50 euros. TikTok often falls short due to algorithmic reach, but the conversion rate often lags behind other channels. On Twitch, the CPM of up to 40 euros initially sounds high, but it only refers to simultaneous live viewers, which puts the number in a different context.

### Is CPM the same as CPM?

Yes. TKP is the German name, CPM (Cost per Mille) the English one. Both describe exactly the same thing: the cost of 1,000 contacts with an advertising message. In international exchanges with creators or platforms, you will almost exclusively come across the term CPM. In the German media planning context, TKP is the common name. But there is no difference in content.

### What is the importance of the TKP for media planning?

The TKP is the central tool for objectively comparing different channels and formats in media planning. Without it, you pay for placements without knowing whether they are expensive or cheap relative to the reach. If you combine the CPM with the platform-specific conversion rate, you can calculate in advance which channel meets your target CAC for which budget before you even send a request.

### How do I interpret a high or low CPM?

A low CPM means a cheap contact, but not necessarily a cheap new customer. If the conversion rate is low, a high CPM on YouTube can still be more profitable. A high CPM can be justified if the audience is very specific and ready to buy, like on Twitch with a 5 percent conversion rate for live viewers. Always evaluate the CPM in the context of the conversion rate and your target CAC.