As we already taught you on how to make money with CPA and CPC advertising is only right that we give the best information to the ones that want to make money with CPM. This type of strategy is commonly used in the advertising market, mainly for those who want to raise their brand awareness and expand their business to larger audiences.
What is CPM?
CPM or “Cost-Per-Mille,” can be resumed to cost-per-thousand-impressions it’s the amount of money that advertisers pay to publishers for every thousand impressions their ad gets. This pricing model is very effective and that’s why it became the most common method for pricing web ads.
The expansion of CPM strategies doesn’t stop there, ads are going beyond the traditional banners and static images and moving to more interactive experiences like videos.
How to calculate your CPM?
To calculate the cost-per-thousand you need to take the total number of impressions and divide by 1,000. After that, divide the campaign budget by the number that you got before and you will have figured out how much budget and what your desired number of impressions will be.
Why should advertisers choose CPM?
As a method in which the main focus is not on conversions is fairly strange as to why do advertisers like this strategy so much. Many other strategies can be effective when it comes to conversion when you spend as much and still advertisers prefer CPM.
The answer is pretty simple, there are situations in which a CPM pricing model is the best option for the job. A smart advertiser doesn’t look only at conversions, they might be really important and essential for every business to grow, but an even bigger element is brand-building/awareness. The times where users buy your products without even asking for what they are buying is long gone. In today’s market, there is a need for brand awareness and trust-building before even trying to sell anything.
When a product or service is new, branding is essential. You need to get the campaign in front of users first and foremost. It’s rare for audiences to click on an ad for a product made by a brand they’ve never heard of. A CPM campaign is great at doing that, it allows you to escalate your brand awareness before jumping into a more conversion-oriented campaign.
CPM campaigns can also help you find the right demographic for your business. For example, if your ad is getting more engagement in a website directed an older people in the 45-65 range then your product suits better that group of people. The CPM strategy here helps you understand better your audience so that you can spend less on targeting the wrong people and have success in future conversion-oriented campaigns.
How to make money with CPM?
The rule where is how we said before raising brand awareness, that’s where you make money with CPM!
Understand that if big brands didn’t invest in CPM at early stages the would never reach the millions of sales that they have today. For example, if only two people know you, you will have no conversions, if ten people know you you will have 1 conversion if a hundred people know you will have 5 conversions, and so on, Conversions are directly related to brand awareness that’s why advertisers use this strategy so much
Of course, you could have the best CPM strategy but if you don’t have a platform to support you your only half your way to success. Of course, you can have success on your own but the fact is that in a world where information and strategies are constantly changing doing everything on your own becomes a very difficult task.
Choosing a reliable AdNetwork gives you benefits like:
- Personalized support
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- Greater Reach
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