CPM (Cost Per Mille)

Также в CPM можно регулировать частоту показов, то есть при малой эффективности уменьшать количество просмотров, а при хорошей кликабельности – увеличивать.

What Is CPM in Digital Advertising?

With 4.95 billion internet users worldwide and over 2.14 billion digital buyers, it is no surprise that the digital advertising space is booming. For publishers and marketers in digital advertising it is imperative to understand the impact their ad campaigns are having and how to create a campaign that not only has a specific message to create brand awareness but also determine if they are getting the best bang for their ad spend buck.

CPM, also called cost per mille, is one of several pricing methods, and metrics, used in marketing to do just this. So let’s take a deep dive into some questions surrounding CPM marketing—What is CPM? What is the CPM pricing model? And how can the CPM metric can be used to optimize display ad campaigns?

Table of content:

What is CPM? [Definition]

CPM, also known as cost per thousand impressions, is a formula that calculates the total ad spend for every thousand impressions on a web page. In CPM campaigns, an impression occurs every time an ad is successfully displayed to the target audience.

How to Calculate CPM?

To calculate CPM, you simply divide the ad spend by the number of impressions multiplied by thousand. The CPM formula is CPM = Ad spend / impressions * 1,000

An advertiser then pays a website owner a set cost per thousand impressions of their ads.

CPM has been one of several industry standard pricing methods for determining advertising costs and pricing web ads since online marketing campaigns began.

While campaign analysts and strategists now have a wealth of data and metrics available to measure total impressions, digital views, user engagement, and ad effectiveness, industry standard CPM still has many benefits for advertisers looking to track the ad impressions of their ad inventory.

For advertisers with a focus on brand visibility and brand awareness, a CPM digital marketing campaign is a common method of raising a brand’s profile. Furthermore, it is not just a case of how many times their advertising inventory is successfully displayed, but also approximately how many ad views they are getting on any given web page.

For example, a CPM strategy that works well for companies new to the market, is to run a CPM campaign across several websites on both desktop and mobile devices to create brand visibility and increase click through rate. As Microsoft put it, CPM campaigns are a good choice for marketing professionals “seeking brand awareness or reach when the goal is a large number of views or impressions of your ad.”

What Is a Good CPM?

As with most digital marketing metrics and pricing models, you can’t define CPM for effective cost based only on a single value. Analyzing past campaigns, benchmarking results against averages for your market, and evaluating the impact of CPM on your ROI can help you determine whether your CPM impressions are a good pricing model for your advertising endeavors.

A lower CPM is not always a positive indicator for an advertiser, as it may be an indication of poor quality traffic. Similarly, for publishers, having a high CPM doesn’t necessarily translate into higher earnings, as some ad inventory may not be sold.

‍How to Optimize Your CPM Campaign

Once publishers and advertising professionals understand the definition of CPM, they can start working to get the best CPM possible. Here are our top tips for your campaigns.

1. Choose an Ad Network

There are a range of ad networks available that can be employed to leverage cpm strategies, including Google AdSense, Criteo and SmartyAds, to name just a few.

For small companies new to display advertising it can be somewhat overwhelming to know where to start, or even if running ads on a CPM basis is the right choice.

While monitoring cost per thousand rates will help you assess the performance of your ad inventory for every thousand impressions and take actions to optimize your revenue streams, it’s essential to understand what influences CPM rates and the seasonality of these changes.

Each publisher will have to consider different factors to determine a reasonable CPM rate for their ads.

At Publift, we are experts at CPM advertising. We can advise you on the best ad format, placement and pricing methods for your campaigns and change them as and when needed. For more on the CPM definition and to learn more about other pricing methods for your ads, check out our guide to CPM, CPC, CPA, and CTR.

2. Prepare for Seasonal Variations

It’s important to know when to expect seasonal variations in CPM rates so you can better benchmark your performance and forecast future revenue. Look at your past data and see where you tend to see dips in your CPM. Think about your industry from a buyer’s perspective. If you run a dating website, then February will be a big month for you as advertisers will heavily increase spending around Valentine’s Day. If you run a personal finance website or health and fitness blog, then the January Blues may be your pot of gold as consumers rush to your websites to kick start their health and wealth New Year’s resolutions.

Knowing when to expect these fluctuations while working with the CPM model will prevent you from getting caught off guard when a drop comes rolling along and help you plan cash flow around these times. We would suggest not making any dramatic changes during a slump and use the time to work on upcoming content to take advantage when advertisers are buying big. If you need to do any testing on your site, the first month of the quarter is a good time.

The last month of the quarter, Black Friday, and Christmas periods, are not a good time for a site redesign to go live or to run another testing that may affect the site. Our account managers at Publift are experts in anticipating trends and building these into your ad management, so you don’t have to worry about it.

3. Place Your Inventory on a Supply Side Platform

In order to try to generate higher Google CPMs, you can place inventory on a supply-side platform (SSP) to open your ad inventory to more advertisers. If you have a niche audience or a high-quality website, more competition for your ads will increase the CPMs.

Another action you can take is to test and experiment with ad formats and ad placements to increase ad viewability.

Another path to improve revenue is to focus on fill rate. Even with a lower cost per thousand, you can increase overall earnings by improving the fill rate of your ad placements.

CPM Advertising- Final Thoughts

As with all strategies in marketing, CPM strategies require constant testing and analysis to determine what works. At Publift we take the heavy lifting out of CPM marketing, driving high traffic and maximizing impressions.

Publift helps digital publishers get the most out of the ads on their websites. Publift has helped its clients realize an average 55% uplift in ad revenue since 2015, through the use of cutting-edge programmatic advertising technology paired with impartial and ethical guidance.

CPM FAQ

1. What is Pay Per Impression?

Pay per impression is the amount advertisers pay a website host for displaying their ads. This is calculated using cost per 1,000 (CPM) impressions.

2. What is an Ad Impression?

An ad impression occurs whenever an ad is displayed to an advertiser’s target audience.

3. What is a Good CPM for Display Ads?

A CPM is not something that can be measured as good or bad. Higher CPMs could have negative outcomes such as not all of a website’s ad inventory being sold. Lower CPMs could be a result of poor quality traffic.

4. How to Choose the Right Online Advertising Pricing Model?

Choosing the right online advertising pricing model depends on the type of business. For publishers, CPMs are lower risk because they only rely on the ad being displayed, but are a higher risk for advertisers. The opposite is true for CPAs, which only pay publishers when a user directly makes a purchase through an ad.

5. How does Traffic Seasonality Influence CPM?

Traffic seasonality can affect how many people visit a site and how many impressions ads receive. A common example is a dating site. When Valentine’s Day nears then the number of users that visit the site increases, raising CPMs.

6. Why is It Important That You Set Goals When Planning Your Display Ad Campaigns?

Setting goals is important because it allows advertisers to develop audience segments, set budgets, and the ad creatives that will be used. Because the differences in payouts—such as CPMs and CTAs— can affect the ad’s efficiency, it is imperative for advertisers to choose the one best suited for their campaign.

7. How to forecast Impressions?

Software such as Google’s Ad Manager can forecast traffic and impressions to a site. When forecasting impressions, it is ideal to factor in traffic seasonality.

Cpm-in tlblrin uyğun deyil

Начав работать с веб-аналитикой в маркетинге, рекламе и продажах, вы непременно зададитесь вопросом, что такое CPM. Пройти мимо не получится, так как это один из популярных инструментов определения стоимости рекламной кампании (РК). Не только в Интернете, но и в печатных СМИ, на радио и телевидении. Вы уже знаете, что соотношение затрат к доходам показывает эффективность того или иного рекламного канала. Маркетологи анализируют значения CPM и другие метрики, чтобы сформировать максимально выгодные стратегии использования бюджета. В этой статье мы рассмотрим одну из моделей оплаты рекламы, узнаем, где она применяется и как рассчитывается.

Что значит CPM

Фиксируется каждый показ объявления независимо от того кликает по нему пользователь или игнорирует. Стоимость переходов рассчитывается с помощью другой метрики – СРС (цена клика по рекламе).
Клики по объявлению – бесплатные.
Реклама демонстрируется целевой аудитории. Например, в настройках рекламной площадки можно настроить аудитории пользователей, кому будут показываться объявления. В кабинетах ВК, ФБ, Яндекс.Директ, Гугл Адвордс можно очень точно сегментировать ЦА – по возрасту, профессии, поведенческим факторам, устройствам входа и другим метрикам. Это помогает сузить охват аудитории до заинтересованных пользователей и сэкономить рекламный бюджет.
Скорость расхода денег по модели CPM зависит от активности аудитории на сайте, в соцсети или на другой площадке-доноре. Чем больше активности, тем быстрее объявление набирает показы и «съедает» бюджет.

Что такое CPM в рекламе и как эта модель используется

Не бывает хороших или плохих рекламных моделей, есть неверно спланированные кампании. Когда ошибочно выбран способ продвижения продукта, то и нечего пенять на «унылые» показатели CPM или СРС. Однако есть рекомендации, где и когда лучше использовать модель оплаты за показы, чем за клики.

CPM подойдет, когда вы хотите заявить о своем продукте или услуге большей аудитории целевых пользователей, популяризировать бренд, торговую марку. Оплата за показы годится и для информирования клиентов о скидках, акциях, распродажах и прочих программах лояльности. Обычно для такой рекламы требуются большие бюджеты, потому что эффективность кампании напрямую зависит от того, как часто объявления показывается в медийно-контекстной сети поисковиков. В настройках вы указываете стоимость за 1000 демонстраций рекламы выбранной целевой аудитории. Ориентируясь на предложенную цену, площадка-донор выстраивает график показов.

Модель CPM часто используют стартапы для того, чтобы заявить о себе на рынке, а также известные бренды для продвижения в массы нового продукта или услуги. Об эффективности показов рекламы на площадке можно судить по количеству кликов (CTR) по баннеру. Если объявление накручивает пустые показы, то стоит задуматься о правильности выбора ЦА или проверить настройки кампании.

Расчет CPM на примерах

Классическая формула расчета стоимости 1000 показов использует всего два показателя. Первый – цена размещения объявления в рекламном источнике, например в медийно-контекстной сети Гугл или Яндекс, соцсетях. Второй – ожидаемое количество просмотров объявления целевой аудиторией. Формула выглядит так:

CPM = стоимость размещения рекламного блока / количество просмотров * 1000 показов

Например, цена размещения баннера на сайте 5000 рублей в неделю, в среднем ресурс посещают 10 000 человек за семь дней. Считаем CPM = 5000/10 000*1000 = 500 рублей за тысячу показов рекламного блока.

Повторим для закрепления ещё раз на другом примере. Стоимость размещения объявления на новостном портале 1560 рублей за семь дней, источник выдает примерную статистику 13 200 показов за неделю. Исходные данные на руках, считаем CPM = 1560/13200*1000 = 118 рублей за тысячу просмотров.

Усложним задачу. Попробуем определить CPM, зная только стоимость размещения и количество переходов по баннеру.

Например, мы продвигаем баннер с помощью таргетированной рекламы во Вконтакте. Месячный бюджет составляет 7000 рублей. В прошлый месяц получили 200 кликов по объявлению. CTR баннера – 0,9%. Мы не знаем, сколько было просмотров рекламного блока, но с помощью показателя click-through rate посчитаем количество показов и CPM.

У нас есть формула CTR = количество кликов / количество показов *100%. Подставим известные значения:

0,9% = 200 / количество показов * 100%

Количество показов = 200 * 100% / 0,9 = 22222 показов

CPM = 7000 / 22222 * 1000 = 315 рублей за тысячу просмотров.

Когда вы работаете с площадкой по модели CPM, нужно стараться больше выживать кликов из показов. То есть баннеры, объявления должны цеплять аудиторию и мотивировать переходить по ним. Следует чаще проверять CTR и, ориентируясь на его значение, работать с креативами: менять тексты, цвет, изображение, кнопки и другие элементы.

Например, вы можете купить трафик за 60 рублей 1000 просмотров или 6 рублей за клик. Бюджет кампании 6000 рублей. Выбирая модель CPC (оплата за клик), получите = 6000/6 = 1000 кликов. Работая по модели CPM, вы получите = 6000/60*1000 = 100 000 показов. Если CTR баннера равен 3%, то за этот же бюджет можно получить втрое больше кликов = 100 000 * 3% / 100% = 3 000 переходов.

В этом случае модель оплаты за тысячу показов потенциально принесет больше конверсий. Поэтому при работе по CPM нужно в первую очередь анализировать баннеры и повышать их кликабельность, то есть показатель CTR. Эта модель дешевле, чем оплата за клик, но при меньшем бюджете может принести больше целевых переходов.

Также в CPM можно регулировать частоту показов, то есть при малой эффективности уменьшать количество просмотров, а при хорошей кликабельности – увеличивать.

Резюме

Мы изучили, что такое CPM – это стоимость за 1000 показов рекламного сообщения целевой аудитории. Узнали, что модель используют чаще для имиджевого продвижения бренда, а также для увеличения охвата ЦА.

Cost Per Mille напрямую взаимодействует с CTR. Чем меньше баннер собирает нецелевых просмотров, тем дешевле обходятся клики. Соответственно вы экономите бюджет и получаете больше переходов, конверсий, продаж.

What is CPM in Marketing? Calculation and Examples

You have been managing your advertising campaigns really well; but how will you calculate the success of the campaign?

There must be some way, some metric that enables you to determine how well has your campaign faired so far. CPM is one such metric that helps you know how your advertising campaign has been fairing, has there been progress since the time you started.

We shall be learning about the CPM and the other terms surrounding it.

In this article:

What is CPM in Marketing?
Benefits of CPM
How to calculate CPM and CPM Formula
Why is CPM important?
Terms related to CPM

Deskera CRM
Automate Your Marketing Efforts

What is CPM in Marketing?

CPM or the Cost per mille is an important metric that represents the efficacy of the online marketing campaigns. A lower CPM is indicative of a good and optimized marketing campaign.

The word ‘mille’ is Latin for a thousand. This metric allows you to calculate the cost for every thousand impressions on your advertisement. Each impression counts as one appearance of the ad. The advertiser pays for every thousand views of an advertisement when the CPM is implemented.

So, we can say that as a metric, CPM helps you to keep a watch on your expenditures made for the digital campaigns. Your digital campaigns include the ones on Google AdWords, LinkedIn Ads, Facebook Ads.

Benefits of CPM

There are several ways in which CPM can benefit a business, including the following:

Increasing sales conversions: When you pay per thousand views, ads with high conversion rates tend to perform extremely well. This will ultimately lead to increased sales conversions
High visibility: Making your ad CPM optimized is a great way to establish or expand the value of your brand, making it stand out
Promote to relevant audiences: Placement of CPM ads on sites that are frequented by prospects is highly effective from a sales and branding standpoint

How to Calculate CPM and CPM Formula

CPM can be calculated with the formula given below:

Total Amount Spent

Calculate CPM by following these steps:

Establish your advertising budget

Setting a budget for your advertising campaign is the first step. For a better understanding let us consider an example. where suppose you spend $10,000.

Establish your target number of impressions

The next step is to determine the number of impressions you want to generate from your campaign. Consider a campaign whose goal is to receive 250,000 impressions.

Calculate CPM

The CPM is calculated by dividing the cost of a campaign by the number of impressions you want and multiplying that number by 1,000.

Applying the CPM formula:

CPM = 0.04 X 1,000

CPM = 40

If you want to invest $10,000 in your campaign and achieve 250,000 impressions, you divide 10,000 by 250,000, which equals 0.04. You then multiply that number by 1,000, which equals 40. You would need to spend $40 per 1,000 impressions on a campaign that has a $10,000 budget.

Why is CPM Important?

With CPM, you can:

Identify and analyze viewership generation;
determine the cost-effectiveness of different media resources;
devise new marketing stages;
determine the effectiveness and performance of previous advertising campaigns.

Deskera CRM
Automate Your Marketing Efforts

Terms related to CPM

There are many other KPIs that advertisers use to gauge the performance of their campaigns. Let’s look at each one of them in detail:

CPA

Companies pay for new customers when they run a marketing campaign; this is called cost per acquisition or CPA. An organization measures the impact of a campaign on its revenue using CPA. CPA isn’t standardized and therefore, there is no threshold value. Customer acquisition costs will be determined by the prices charged, operating expenses, and profit margins.

CPC

The cost-per-click is how much you pay for every time someone clicks on an ad during a marketing campaign. Cost-per-click is applied to both social media and search engine campaigns. There are several factors that influence the CPC. These include the ranking with other advertisers bidding on the same keyword, the quality score, and the maximum bid.

CTR

Click-through rate is known as CTR and represents how many users click on a link compared to how many users view a page or advertisement. Another way to put it is, it is a ratio that tells you, from all the people who saw your ad, how many clicked on it.

Your website’s or landing page’s click-through rate helps you determine whether your marketing campaign was successful. The higher the click-through rate, the more likely people are to find your ad relevant, whereas the lower the CTR, the less relevant your ad is considered to be. You will have different CTRs depending on your industry, your keywords, and the campaign you are running. Therefore, there is no identified convention to convey a good CTR.

PPC

PPC is short for pay-per-click. As the name goes, the PPC works on a model where the advertiser pays a charge whenever the users click on their ads. Visitors aren’t earned organically, but the advertisers pay to have visitors to their sites.

ROI

ROI or return on investment is a term that is troublesome for most managers. When it comes to marketing, managers need to ensure that they achieve their financial targets as planned against the investment made. There are considerable sums of money that go into generating sales and leads. Moreover, the sales processes can be lengthy and may take time to show great results. Eventually, this leads to a delayed identification of ROI.

However, despite the slow process, the ROI may show a better picture in the end. Another challenge could be, because some campaigns are carried out for brand awareness, determining their ROI can be difficult.

How can Deskera Help You?

It is imperative to learn about the effectiveness of advertising campaigns to achieve better leads and grow your sales prospects.

With Deskera CRM, automate your sales and marketing, generate new leads, and analyze performances with this world-class platform.

So why wait? Sign-up to access remarkable features now!

Key Takeaways

CPM or the Cost per mille is an important metric that represents the efficacy of the online marketing campaigns
A lower CPM is indicative of a good and optimized marketing campaign
This metric allows you to calculate the cost for every thousand impressions on your advertisement
Increasing sales conversions, better visibility, and promote to the relevant audience are some of the benefits of CPM
Identifying and analyzing viewership generation and determining the cost-effectiveness of different media resources are some of the purposes that CPM serves
CPA, CPC, PPC, ROI, CTR are some of the terms that are closely related to CPM

15 Sales Metrics for Growth

If you cannot measure it, you cannot improve it- Lord Kelvin Has your company been facing a lot of losses lately? Are you unhappy with thegrowth rate of your company? Or do you simply like to keep tabs on yourcompany’s performance? If so, then it’s time you start tracking your salesmetrics! Sal…

Deskera Blog Rhema Hans
10 Steps to Find the Right Prospects

Any business, ranging from a start-up or a freelancer selling his skills onlineto a multi-national company— sales [https://www.deskera.com/blog/what-is-sales/] is always at the top of the funnel. Generating leads[https://www.deskera.com/blog/what-is-a-lead/…

Deskera Blog Deskera Content Team
Sales Prospect: How to Identify and Attract Ideal Leads

Any business should know that the sales[https://www.deskera.com/blog/what-is-sales/] team is directly responsible forthe amount of income you generate. As a result, businesses must ensure that thesales representatives are making the most of their time. Prospecting is a crucial component of sale…

Deskera Blog Deskera Content Team
Best Marketing Blogs To Follow In 2020

Over the years, the marketing community has created a great number of blogs to share their ideas and experience. Read on to find out the best marketing blogs that make it to the 2020 list!

Deskera Blog Jing Wen Ang
Network Marketing in Business: The Complete Guide

We all remember Tupperware and The Pampered Chef and their products that were apart of our daily life. These are not just names of brands[https://www.deskera.com/blog/brand-awareness], but they entail a story of howyou can become your own boss. Work only when you want and the way you want.Well, …

Deskera Blog Deskera Content Team
Online marketing tools that can help boost your start-up

* Bootstrapping an online business? * Looking to create an online community that thrives on customer engagement? * Want to leverage innovative marketing techniques to spruce up your digital business? There are thousands of marketing tools that can help you elevate your onlinebusiness. W…