Use this TikTok CPM Calculator to determine how much ads cost
to
place on TikTok.
CPM is the price per 1,000 ad impressions (an ad impression is a single time an ad is shown on TikTok).
When using the Reach objective in TikTok you are charged on a CPM basis.
As TikTok is a powerful branding and community-building platform, it can make a lot of sense to use
Reach advertising on it.
Feel free to experiment with different scenarios in order to help you understand this ad pricing model better.
The equation for CPM is:
CPM stands for Cost Per Thousand Impressions (with M standing for mille -
which is French for 1,000 ). It is one of the most common ad pricing models.
The minimum level to start being able to judge the success of an ad campaign is 1,000 impressions.
This is because, at lower levels of exposure, random events can skew results.
For example, clicks can occur by accident on a single ad. Or else a single very interested user can
generate 100 ads in a day but is still likely to click on only one from any advertiser.
Therefore performance can be better measured after more ad impressions have been seen, and this
randomness has been weeded out. This is what makes 1,000 ads a sort of basic unit in online
advertising.
In most cases, a CPM advertising deal is the best type of deal a website can get. This is because
the website will still get paid regardless of how well an ad campaign performs.
However, this does not mean the publisher should get lazy! Optimising ads towards clicks (at the
very least) always makes sense, as it will help gain repeat business.
A CPM deal can also be great for advertisers who are simply looking to spread their message far and
wide. As long as an ad buyer is willing to accept restrictions, they can often buy ads at a very
cheap CPM.
For example, buying ads on a 'blind' basis (where the buyer doesn't know which exact sites the ads
will go on). This can still be a relatively risk-free proposition, as even blind ad networks will
make promises as to the type of site they use.