CPM basics
- The concept: You pay a fixed amount for your ad to be displayed 1,000 times
- Objective: Maximize visibility, promote a product or work on brand image (Branding)
- Calculation : (Total budget / Number of displays) x 1,000
- The difference: Unlike CPC, you pay for visual exposure, regardless of whether or not the user clicks
In digital marketing, there are two ways of looking at things: either you want immediate action (a click), or you want to make a lasting impression.
Visit CPM (Cost per Thousand impressions) is the favorite tool of those who want their brand to be seen. Think of CPM as a giant billboard on the side of a highway: you pay for thousands of drivers to see your logo.
On Google, Facebook or LinkedIn, it's the same principle. You buy "share of voice" to get into the minds of your future customers.
How do you calculate your CPM?
The calculation is simple:
CPM = (Total budget / Number of impressions) x 1,000
Case in point: You spend 200 EUR on a campaign. It is displayed 50,000 times on your target's screens. Your CPM is 4 EUR. This means that for every 1,000 people who see your message, it only costs you the price of a coffee!
When to opt for CPM?
CPM is a strategic weapon, but it can't be used just any old time. It's the ideal choice for :
- Launch a new product: Before people buy, they need to know you exist. CPM floods the market with your message.
- Work on your brand image: If you want to be perceived as the leader in your sector, you have to be visually present everywhere.
- Promoting an event : For a trade show or conference, the aim is to circulate information to a large audience.
Pitfalls to avoid
Paying for advertising is all well and good. But you have to make sure that the display serves a purpose. Here's our advice:
- Take care of the visual: Since you're paying per display, your image or video must be striking from the very first second. Otherwise, it's a wasted impression.
- Target the right audience: A very low CPM is useless if your business software ad is displayed on children's video game sites.
- Watch for repetition: Seeing the same ad 10 times in an hour is annoying for web users. Watch the "frequency" to avoid saturating your audience.