Cost per impression is the amount paid each time an advertisement is shown once. It is usually quoted per 1,000 impressions (CPM). The formula is total cost divided by total impressions. The same formula applies to branded merchandise, where the impressions are counted over the life of the item instead of by an ad server.
This guide covers the digital formula, Australian benchmarks, the factors that push CPM up, and a worked method for pricing impressions from pens, mugs, bags and other promotional products.
TL;DR
- Cost per impression = total cost ÷ total impressions. CPM = that figure × 1,000.
- Australian Facebook CPM averaged AU$11.04 in 2025. Platform, audience and season move it widely.
- Merchandise has no ad server. Impressions are estimated from how long an item is kept and how often it is seen.
- Items kept and used daily (drinkware, bags, pens, tech) usually produce the lowest cost per impression.
- A low unit price is not a low cost per impression if the item is discarded or never used.
Table of Contents
- What cost per impression means
- The formula
- What counts as a good cost per impression
- Why cost per 1,000 impressions runs high
- Cost per impression is not the whole picture
- Cost per impression for promotional merchandise
- What makes an item produce more impressions
- Merchandise compared with digital advertising
- Where the measurement falls short
- Our perspective
- Ordering branded products for a measurable campaign
- Steps to calculate cost per impression for a campaign
- FAQ
- Sources
What cost per impression means
An impression is one instance of an ad being displayed. It does not require a click, a purchase or even attention. Cost per impression (CPI) therefore measures the price of exposure, not the price of action.
Two terms are used for the same idea:
- Cost per impression (CPI): the cost of a single impression. Typically a fraction of a cent.
- CPM (cost per mille): the cost of 1,000 impressions. This is the figure ad platforms report and bill against.
CPM is the practical unit because single-impression costs are very small numbers. A CPI of AU$0.011 is hard to compare at a glance. The same cost expressed as AU$11 CPM is not.
The formula
Google’s documentation states the calculation as cost divided by total impressions, multiplied by 1,000 in its explanation of viewability and Active View reporting.
CPM = (total cost ÷ total impressions) × 1,000
CPI = total cost ÷ total impressions
Examples:
| Spend | Impressions | CPI | CPM |
|---|---|---|---|
| AU$500 | 50,000 | AU$0.01 | AU$10 |
| AU$1,650 | 150,000 | AU$0.011 | AU$11 |
| AU$3,000 | 750,000 | AU$0.004 | AU$4 |
The reverse calculation sets a budget. At an AU$11 CPM, 150,000 impressions cost about AU$1,650. That is the same example Crunchy Digital uses for Australian Facebook campaigns.
On invoices, the logic is identical. Campaign Manager 360 explains that impression costs are the CPM rate multiplied by the impression count, divided by 1,000. Reported impressions and billed impressions can differ, so reports and invoices are worth reconciling.
What counts as a good cost per impression
There is no single good number. The right CPM depends on the platform, the audience and the goal. Three points hold across most campaigns:
- Compare like with like. A LinkedIn B2B audience and a broad Facebook audience carry different prices.
- Compare against the goal. A brand awareness campaign is judged on CPM. A sales campaign is judged on cost per acquisition.
- Compare against local data. Australian benchmarks differ from US ones.
Australian reference points
Crunchy Digital reports an Australian Facebook CPM average of AU$11.04, with a range of AU$10.68 to AU$17.04 for 2025. The same page reports that the national average opened 2025 at AU$14.34, closed January 2026 at AU$10.68, and peaked at AU$24.80 in November, the Black Friday period.
Two lessons follow. First, seasonal competition for the same audiences raises prices sharply. Second, a benchmark is a snapshot. Figures should be re-checked before a budget is set.
Why cost per 1,000 impressions runs high
A CPM above benchmark usually has one of these causes:
- Narrow targeting. A small audience means fewer available ad slots, and advertisers compete for them.
- Peak season. Retail events such as Black Friday and the lead-up to Christmas raise auction prices.
- Premium placements. Video and prominent positions cost more than standard display.
- Viewability bidding. Paying only for viewable impressions raises the stated CPM but removes wasted exposure.
- Low ad quality. Platforms may charge more to show ads that audiences ignore.
Viewable and non-viewable impressions
Not every served impression is seen. Google’s definition of viewability for display is at least 50% of the ad area visible for one second, or two seconds for video. Some impressions are also non-measurable, for example where tracking is blocked.
For budgeting, this means a headline CPM can overstate real exposure. Viewable CPM (vCPM) bidding charges only for impressions that meet the viewability standard. Background on how Google’s ad pricing is structured is covered in this overview of Google advertising costs.
Cost per impression is not the whole picture
Impressions measure reach. They do not measure attention, recall or sales. Three related metrics fill the gap:
| Metric | What it measures | Use |
|---|---|---|
| CPM | Cost of 1,000 exposures | Awareness campaigns |
| CPC | Cost of one click | Traffic campaigns |
| Cost per acquisition | Cost of one customer or lead | Sales campaigns |
The Australian Facebook figures above show the spread: the same source lists a cost per link click of AU$1.85 to AU$3.20 next to the CPM. A low CPM with weak creative can still produce a high cost per customer.
Cost per impression for promotional merchandise
Branded merchandise has no ad server and no dashboard. Impressions are estimated. The estimate rests on three inputs:
- Total cost: the unit price, branding, setup (if charged) and delivery, multiplied by quantity.
- Lifespan: how long the recipient keeps and uses the item.
- Exposure rate: how many people see the item per day or per use.
The formula is the same: total cost ÷ total estimated impressions.
Industry commentary stresses that the figure is not static and depends on product choice. The item has to be kept and used before it produces any impression at all.
Published benchmarks from the promotional industry
The Advertising Specialty Institute (ASI) publishes an Ad Impressions Study built on consumer surveys in the United States. Its 2023 product snapshots, in US dollars, include:
- A $10 insulated travel mug at about one-third of a cent per impression.
- A $15 cotton polo under one cent per impression, with 2,106 lifetime impressions.
- A $2 non-woven tote bag at one-tenth of a cent per impression, with 1,940 lifetime impressions.
- An $8 power bank just under one cent per impression, with 870 lifetime impressions.
These are US consumer figures in US dollars. They are a reference for how the calculation works, not a forecast for an Australian campaign. Australian lifespans, climate, work habits and audience will differ.
A worked example
The numbers below are an illustration with assumed inputs. They are not Simply Merchandise prices.
Assumptions:
- 500 branded mugs
- Total cost, including branding and delivery: AU$3,000 (AU$6.00 each)
- Each mug is used 3 days a week for 18 months
- Each use is seen by an average of 2 people
Calculation:
- Uses per mug: about 3 × 78 weeks = 234
- Impressions per mug: 234 × 2 = 468
- Total impressions: 500 × 468 = 234,000
- CPI: AU$3,000 ÷ 234,000 = about AU$0.0128
- CPM: about AU$12.82
That sits close to the Australian Facebook average quoted earlier. Changing one assumption changes the answer. If half the mugs are never used, the CPM doubles to about AU$25.64. If the mugs last three years, it halves.
The lesson is that quality and usefulness drive the result more than unit price does.
A calculator template
A simple spreadsheet is enough. One layout, similar to a cost-per-impression template published by CompanionLink, uses these columns:
| Column | Example entry |
|---|---|
| Item | Branded mug |
| Quantity | 500 |
| Total cost (AU$) | 3,000 |
| Expected lifespan (weeks) | 78 |
| Uses or views per week | 3 |
| People exposed per use | 2 |
| Total impressions | 234,000 |
| CPI (AU$) | 0.0128 |
Run it with a cautious case and an optimistic case. A range is more honest than a single figure.
What makes an item produce more impressions
Recipient behaviour decides the outcome. The same industry commentary notes that the item works as a persistent reminder only when the recipient decides to keep and use it daily. Items that are lost, left in drawers or discarded generate non-measurable impressions, much like blocked tracking in digital campaigns.
Factors that raise the impression count:
- Daily utility. Drinkware, pens, notebooks, bags and phone accessories earn repeated use.
- Visible placement. Logos on the outside of a bottle or bag are seen by others. Logos inside a pouch are not.
- Durability. An item that lasts years spreads cost across more impressions.
- Fit with the audience. A conference attendee, a staff member and a customer use different items.
- Branding quality. Clear, correctly sized logos read at a distance. The branding method matters: embroidery, screen printing, pad printing, digital printing, full colour branding and laser engraving suit different materials.
Item-by-item notes
Drinkware. Reusable mugs and bottles sit on desks, in cars and at gyms. Exposure is frequent and shared. See branded drinkware.
Bags. Bags travel through public spaces. Exposure reaches beyond the owner.
Pens and stationery. Low cost per unit, and often passed between people. A related piece covers why a branded pen suits many businesses.
Technology. Power banks, cables and screen cleaning kits stay in daily reach. See branded technology products.
Eco products. Reusable and recycled-material items suit audiences that prefer lower-waste choices. See eco products.
Apparel. Worn items are seen in every setting. Staff uniforms and event wear add repeated exposure.
Merchandise compared with digital advertising
| Factor | Digital ads | Promotional products |
|---|---|---|
| Pricing basis | Auction, per 1,000 views | One-off purchase |
| Measurement | Platform reports | Estimated from lifespan and use |
| Duration | Ends when spend stops | Continues while the item is used |
| Targeting | Detailed audience controls | Chosen by who receives the item |
| Risk | Wasted spend on non-viewable impressions | Items not used or discarded |
| Seasonal price swings | Yes, peaks near retail events | No, but order lead times apply |
Research points to a complementary role. A peer-reviewed study on media mix found that promotional products improved credibility perceptions, attitudes and behavioural intent compared with television advertising alone. The findings concern combined use, not replacement of other channels.
Where the measurement falls short
Cost per impression for merchandise is an estimate. Limitations include:
- Survey-based lifespans depend on what recipients report.
- A impression from a glance and an impression from daily handling are counted equally.
- Impressions do not show whether the viewer remembered the brand.
- The same item given to the wrong audience produces few useful impressions.
For this reason, pair the estimate with a direct measure: a code printed on the item, a dedicated landing page, or a short question at checkout asking where the customer heard of the business.
Our perspective
We have supplied branded products to Australian businesses for over 30 years. In that time the same pattern shows up in enquiries: the first question is unit price, and the better question is how long the item will stay in use.
Three practices follow from that experience:
- Choose the item for the recipient. A useful item reaches more impressions than a cheap one.
- Spend on branding that reads. A clear logo on the right method for the material is seen more often than a faint one. We offer embroidery, digital printing, screen printing, pad printing, full colour branding and laser engraving so the method fits the product.
- Set the calculation before the order. Write down the assumed lifespan and exposure, then compare the result with the digital CPMs the business already pays.
Free setup on branded items removes one cost from the total, which lowers the numerator in the formula. Express delivery is available where an event date is fixed.
— Aeros
Ordering branded products for a measurable campaign
Businesses, event organisers, marketing teams and nonprofits can order custom branded products through Simply Merchandise. The range includes pens, keyrings, bags, drinkware, clothing, technology, eco products and notebooks. Branding options cover six methods, setup is free on branded items, and express delivery is available for urgent orders.
Starting points by goal:
- Everyday desk and kitchen use: drinkware
- Daily carry and office use: technology products
- Lower-waste ranges: eco products
Further reading on choosing and budgeting: best value promotional products and promotional products that get used in Australia.
Steps to calculate cost per impression for a campaign
- Set the goal. Awareness, event presence or retention.
- Total the cost. Units, branding, setup and delivery.
- Estimate lifespan. Use a cautious figure, in weeks.
- Estimate exposure. Uses per week and people reached per use.
- Apply a loss rate. Remove a share of items assumed lost or unused.
- Calculate CPI and CPM. Total cost ÷ total impressions, then × 1,000.
- Compare. Use current Australian digital benchmarks.
- Review after the campaign. Update the assumptions for the next order.
FAQ
What is a good cost per impression?
It depends on platform and goal. Australian Facebook CPM averaged AU$11.04 in 2025, with seasonal peaks well above that. A figure at or below the benchmark for the same platform and audience is a reasonable target.
How do I calculate cost per impression?
Divide total cost by total impressions. Multiply by 1,000 for CPM. For example, AU$1,650 spent for 150,000 impressions is AU$0.011 per impression, or AU$11 CPM.
Can cost per impression be calculated for promotional products?
Yes, as an estimate. Divide the total order cost by the impressions the items are expected to produce over their lifespan. Published figures such as the ASI study are US-based, so local assumptions should be used for an Australian campaign.
Why is my cost per 1,000 impressions so high?
Common causes are narrow targeting, peak-season competition, premium placements and viewable-impression bidding. Reviewing the audience size and the campaign dates is the usual first step.
Sources
- Understanding viewability and Active View reporting metrics, Google Ads Help
- Compare invoices with reporting, Campaign Manager 360 Help
- Facebook Ads Costs in Australia, Crunchy Digital
- The Australian Branded Merchandise Industry report, PromoWise Australia
- ASI 2023 Ad Impressions Study product snapshots
- ROI unlocked: measuring the hidden impact of promotional merchandise, CompanionLink
- Improving the media mix: how promotional products enhance advertising impact
