Course Detail

Course Description

As a new business in town, how do you plan to get yourself noticed? You can either sit back for months and build your image organically. Or level it up a notch by introducing CPM advertising to your promotion strategy. By running ad campaigns solely focused on building brand awareness, CPM advertising gives you the option to pay per thousand impressions- making it a cost-effective method. 

However, this isn't limited to new businesses. CPM ads are also a favorite among well-established businesses like Coca-Cola. With increasing competition, the need to remain top-of-mind with your audience also grows.

So whether you're a newly established wanting to be the talk of the town or an established one striving to survive the competition, CPM ads can be a great help. Let's get into the world of CPM advertising and understand how you can optimize your ad spend with this blog. 

Understanding CPM Advertising 

CPM, or cost-per-mille, can be understood from the name itself. The Latin word 'mille' is an expression for thousand, so CPM literally means paying for a thousand impressions. You pay a fixed cost every time your ad network gets 1000 impressions. Impressions can be counted by the number of times an ad is displayed in front of the user, disregarding whether it is clicked on or not. 

Simply said, it is a pricing model within PPC advertising in which you pay every time your ad receives 1000 impressions. It aims to attract CPM traffic, which is usually a fresh audience, hoping to convert them into customers. 

A Practical Example of CPM

Let's understand CPM advertising with a real-life ad example. 

Suppose you are a newly launched shoe company that wants to build awareness around your brand. You start your campaign by displaying banner ads on websites that attract high traffic from users interested in shoes. To save cost and build up on your objective, the pricing model you opt for is CPC ads. The website charges $4 for ads, and your budget for the week is limited to $100. 

The total number of impressions will be calculated as: Total Ad Spend / Cost Per Mille * 1000

Based on our example, your shoe ad will get:

100 / 4 * 1000 = 25,000 impressions 

Thus, advertising on a website that charges $4 CPM will allow you to attain 25,000 impressions per week within your budget. 

Alternatively, CPM can be calculated as Total Ad Spend / Number of Impressions * 1000. 

Remember that this is just a rough figure, and CPM impressions can differ greatly depending on various factors.

What makes CPM so important?

Brand Awareness

The biggest challenge a new business faces is establishing a presence within the industry. With big players in the market running high-cost ads relentlessly, what you need is an ad that cuts through this competition. Providing broad reach is one of the biggest perks of CPM advertising, ensuring that your ads are seen and the brand gets known by a large number of people.

For instance, if you're launching a shoe brand and want everyone to know about it, CPM ads can work. 

Clear-Cut Pricing 

Paying a fixed rate for every thousand impressions your ad gets- that's a pretty simple pricing model to understand. You can easily forecast your ad spend, manage your budget, and compare costs across different websites and channels. 

First Step Towards Sales

CPM builds brand awareness, which is the first step towards a sales conversion. Some might scroll past your ad, but many will want to know the ad platform more and enquire about it. They can effectively be turned into a lead that can be nurtured into making a purchase.

Versatile Choice 

Small businesses often lack money to spend on every ad, which would have made them reconsider online advertising if it weren't for CPM. 

CPM advertising is affordable for both small and big businesses. It ensures that ads reach a larger audience at a lesser cost. You can even scale up or down your advertising whenever you want, making it a versatile choice for varying budgets. 

CPM vs CPC: Which one should you go for? 

First and foremost, ask yourself two questions- 

• What are my specific campaign goals?
• What eventual result do I expect? 

CPM advertising is designed to build brand awareness and engagement. You pay a fixed rate for every 1000 impressions, regardless of whether they get clicks. The only downside is that CPM ads require heavy attention to targeting. Unless your ads target a very relevant audience, CPM ads won't do much. 

CPM advertising is designed to generate conversions in the form of website visits, sign-ups, and downloads. You pay only when someone clicks on your ad, not just for merely showing it to users. A downside is that it doesn't receive as many impressions.

 CPC traffic generally consists of audiences who are already aware of your brand and are more likely to take action. 

Optimizing Strategies for CPM Ads: How to Make the Most of Out of Them 

Anyone can run CPM ads, but only the right strategies will help you reach your impression goals. Remember that optimization is not always about reducing the cost but strategically allocating your money to tenfold the return on your investment. 

Let's get into the strategies that can help you make the most out of CPM advertising. 

Target precise audiences 

Targeting a broad audience will probably reduce your CPM at first, but does that mean you should do it? Don't shy away from targeting audiences that are specifically interested in what you have to offer. Ads relevant to Buy traffic the audiences will always have better engagement and conversions, bringing down your CPM in the long run. 

Think of how your shoe company will benefit more from targeting users looking to buy footwear. Your brand will be seen, understood, and considered. However, targeting a general audience will only result in a mindless scroll. 

Visibility with ad placements 

Where your ad appears matters. A cramped-up ad between the website text won't do much to increase your visibility. You need to give it a placement where it can be easily visible to your audience. Top and bottom-of-the-page ad placements work for mobile phones, while left and right ad placements work for desktops. 

CPM can also depend on the popularity of the website where your ad is placed. A popular website, despite a higher CPM, will attract a more engaging audience. 

Rope in with ad formats 

CPM advertising calls for brand awareness, which in turn calls for ads that capture attention.

Give this a thought: Would a native ad format be as effective in capturing attention as a banner or video ad? It will most likely go unnoticed. As a general rule of thumb, visuals work best in building familiarity and making quick recall possible. So, when you're thinking of ad formats, think of banner or video advertising. 

Keep up with trends 

CPM rates change drastically with the industry's coming trends. Think of how all clothing brands advertise end-of-season sales at the same time Traffic Source. The result? Higher CPM advertising. So, it's best to predict such changes and adjust your budget accordingly. Keep a sufficient amount of funds in hand to bid higher and ensure that your ads remain effective. 

Jumping on viral social media trends can be another way to maximize your CPM advertising. Trendy ads are ten times more shareable and will spark a fear of missing out among those who don't come across them, urging them to actively search for them. 

Diversify your ad creatives

Let's go back to the example of our shoe company. You have two options: create one single ad displaying a pair of white sneakers and show it to the users repeatedly, or diversify your ad creatives by creating variations of content along with multiple pairs of sneakers. 

The first option looks easy from the surface but can lead to ad fatigue among the users. The second option is time-consuming but effective unlike any other. 

This diversification will tell you what combinations work best so you can allocate more funds to it. 

Conclusion 

In the end, CPM advertising is just about paying for views. It's about creating strategies that leave a meaningful impact. Every penny you spend is a step toward engaging your audience, getting leads, and ultimately contributing to your brand's growth. 

Remember that making comparisons with your results can make a huge difference- preventing you from tossing money into the void.

We recommend using an ad network like 7Search PPC, which allows you to make competitive bids under the CPM model. We make sure that your budget is spent efficiently, safeguarding another win for your ads. 

Frequently Asked Questions (FAQs)

What is CPM advertising? 

Ans. CPM, or cost-per-mille pricing model, charges you for every 1000 impressions your ad gets. It works best when your goal is to improve awareness for your business. 

Is CPM advertising right for my business?

Ans. Whether CPM advertising is right for your business depends on the goal you want to achieve. If you just want to make a mark in front of your audience, CPM can do wonders. 

What is the formula to calculate CPM?

Ans. The formula to calculate CPM is: Total Ad Spend / Number of Impressions * 1000. Total Ad Spend is the budget you allot to your campaign, and impressions refer to the number of times your ad is displayed in front of a user. 

What ad network is the best for CPM advertising? 

Ans. 7Search PPC is the best ad network for CPM advertising. You can conveniently connect with the website publishers and make competitive bids to win your ad the best placements.