CPC, CPM, CPL, CPA… If you are a specialist in digital marketing or a regular of advertising campaigns on Google, these terms are inevitably familiar to you. But for others, these acronyms seem a priori mysterious.
Understanding this jargon remains essential for anyone wishing to start in e-commerce, however, because it will allow you to measure the performance of your advertising campaigns and therefore to optimize them if necessary.
In this article we will focus on the notion of “cost per thousand impressions”.
First, we’ll see what the term CPM means, and how this type of technique works. Then we will see what are the strengths of CPM within a digital marketing strategy. Finally, we will look at the advantages of CPM in the particular field of social media such as Facebook and LinkedIn, while comparing it with CPC.
What is CPM?
Cost Per Thousand Impressions (CPM) is a marketing term that refers to the cost that an advertiser pays per thousand ad impressions on a web page. But then, what do we mean by impression? An impression is a metric that counts the number of views for a given ad or engagements Brunei Email List receives. By engagement, we must understand an action such as a like, a comment or a share.
But CPM isn’t the only way to estimate the cost of buying an online advertising campaign. Other models exist such as CPC (Cost per click) or CPA (Cost per action / acquisition), CPL (Cost per lead), CPS (Cost per sale). All of these models are performance-based: you pay if the expected action is taken by a user, whether it’s a click, a purchase, etc.
How does CPM work?
Cost per Thousand Impressions is a classic online marketing method in which businesses pay for views on their ad. It is mainly used in the field of online advertising and relates to a type of marketing related to web traffic. Google Ads is the prime example of this type of platform that works on a CPM (and CPC) basis, but there are other different media, like Facebook, Amazon, etc.
As a single impression expresses too negligible a quantity, this type of indicator is measured in thousands, or more. Unlike a cost per click model, a cost per thousand impressions model is able to measure brand or business awareness.
How is the cost per thousand impressions measured?
The classic formula is this: Cost per impression = advertising cost / 1000 impressions
All strategies, methods and campaigns based on this measurement indicator are qualified as “CPM”.
And when it comes to results, how do campaigns targeted at cost per thousand impressions compare to other types of campaigns, like those set up on a CPC system, for example? Well, the cost of a CPM campaign is usually lower than other similar marketing strategies. Businesses and brands typically get more impressions for less money than they could have garnered through other marketing campaign methods. However, what is called an “impression” can be difficult to measure. An impression is counted each time the platform serving your ads determines that an ad is visible, according to its own standards and criteria …
Now let’s see how CPM type metrics are used, especially in a larger digital marketing strategy.
How to Get the Most out Of a Cpm-Style Advertising Strategy?
Businesses can expect to see meaningful results from CPM strategies when these are used in a significant marketing campaign focused on raising their product awareness and / or brand recognition.
As CPM strategies are generally perfectly targeted, they are not suitable for small businesses, which focus on a niche market, and who wish to directly attract a given subset of consumers. These CPM strategies are also not recommended if your e-business needs quantifiable, tangible results to justify your marketing spend.
So before building a solid foundation CPM strategy, make sure you understand the following:
What are your overall business goals, and how can a CPM metric help you assess them?
What are the specific objectives of your new strategy
How Will You Define Your Leads?
What appropriate means will you adopt to keep track of your new notoriety?
Finally, it’s important to note that this cost-per-thousand-impressions strategy is not designed to be used on a stand-alone basis. The best results in CPM strategies and marketing are always achieved in conjunction with some other form of marketing that tracks your prospects and works to convert them into new customers.
Now let’s take a look at the role of CPM in the larger sphere of digital marketing, and in particular the strategies with which it fits perfectly.