What Is CPM and Why Your Marketing Team Should Care

As an advertiser and marketer, it is important to understand the impact of your campaigns and content on your target audience.

It’s also important to know how much money to invest to make sure that these campaigns and content are actually seen by your audience.

You may have heard of CPM before – it’s a formula and metric that tells you just that.

This article will tell you what CPM is, how to calculate it, and how to get the best CPM.

CPM meaning

CPM in marketing is cost-per-1000, also known as cost-per-1000 impressions or cost-per-mile. It’s a formula that calculates the total ad spend per 1,000 impressions on a webpage.

How does CPM work?

CPM is widely used in advertising, marketing campaigns, social media, and digital marketing. It shows you total ad spend per 1,000 impressions. A The impression in CPM is how many views / interactions an ad receives – when an ad is successfully displayed to a visitor or audience member on a web page.

Impressions are small units of measurement in marketing, which is why they are calculated according to 1,000. This gives advertisers and marketers a better idea of ​​how their work is affecting viewers.

CPM is an effective top-of-funnel strategy as it helps advertisers get a large audience’s attention to content, all on a predetermined budget.

As a result, you’ll increase brand awareness and recognition, and develop an understanding of which ads and content types are most successful with your audience so you can improve

CPM advertising

Advertisers often use CPM. They choose an ad publisher to work with based on where they want their ads to appear and what audience they want those ads to be served to. Then, advertisers often pay the ad publisher $ 1 to $ 10 for every 1,000 ads shown to viewers.

This method of advertising allows advertisers to stay on a budget while ensuring that their target audience sees their ads and campaigns in large quantities. Especially when used on mobile devices, CPM ads are an effective way for advertisers to determine the impact of their in-app ads.

Calculate CPM

To calculate CPM, you need to use the following formula, which says CPM is equal to the total amount / total spent on ads divided by the total number of impressions times 1,000.

CPM formula

How to Get the Best CPM

There are a number of tips and techniques you can use to get the best CPM possible – here are a few examples.

1. Select an advertising network.

There are several networks and publishers available for your CPM ads. Here are five popular options:

• Google AdSense: Video Ads, Cell Phone Ads, Display Ads, Text, In-Feed Ads, In-Article Ads, Content Recommendation Ads, Game Ads
• Criteo: Digital Ads, Contextual Ads, Mobile App Ads, Dynamic Ads, Video Ads, Self-Service Ads
• BuySellAds: Native Ads, Sponsored Content, Podcast Ads, Display Ads
• Media.net: contextual ads, display ads, native ads,
• SmartyAds: premium videos, native ads, banners

2. Select an ad tool.

You should also define a CPM and ad tool to help you plan, execute, monitor and analyze your campaigns.

CPM software

CPM software is typically ad software, meaning it can help you create, publish, and report on your ads.

For example, you can use the HubSpot Ads software to aid your CPM strategy.

HubSpot is unique because it enables CRM-powered marketing. That said, you can use the data from your CRM to create personalized and targeted advertising campaigns and report on the ads that turn prospects into customers.

With HubSpot Ads software, you can also …

• Segment target groups.
• Personalize ads.
• Report on leads and ROI generated from each Facebook, LinkedIn or Google ad.
• Understand the allocation of revenue from specific advertising campaigns and platforms.
• Automatically register lead information in your CRM.
• Create travel-based advertising campaigns for Facebook audiences.

To apply CPM software to CPM displays:

Here are some specific examples of how you can apply a tool like HubSpot Ads software to your CPM strategy and ads.

• Refer to your contact details to effectively address your target audience.
• Apply the results of past campaigns to create ads that you know will resonate with your target audience.
• Use the knowledge from your CPM campaigns about what works best for your audience to create and share more specific campaigns through HubSpot (since CPM campaigns are broad – more on this below).
• Review your CPM results along with your revenue attribution from your other ads and campaigns in HubSpot to see total ad spend versus your budget.
• Enter contact information from CPM ads into HubSpot so that all contact and customer data across the company is organized on a single platform.

3. Use CPM in large-scale advertising and marketing campaigns.

CPM campaigns are best for large-scale marketing ads and campaigns. Because their main function is to increase brand awareness and recognition value. They provide the insights and data businesses need to get more specific with follow-up ads and who they are targeting with those ads.

4. Highlight your difference.

Since your CPM ads are bound to be broad, it is important to highlight the difference in your product.

For example, if you’re running a CPM ad on a training sneaker, make sure your ad highlights the unique features of the training shoe (e.g., it’s great for any CrossFit athlete for X reason).

5. Think about the ad format and placement.

With CPM ads, it’s important to consider ad format and placement.

Do research on your buyer personas and audiences, as well as competitive intelligence – this will provide an understanding of what works best for your audience and what works best for your competitors.

This research will also help you decide which ad publisher to share your CPM ads with based on the audience you can target through that publisher as well as the format in which you can publish your ads (ex. B. Display ads, cell phone ads, etc.). .).

6. Analyze your results consistently.

As with all business strategies, you need to analyze your results. Make sure to track the success of your CPM ads and campaigns – report what’s working and what’s not getting on target.

You can do this by calculating your CPM regularly (while ads are live and after the campaign ends), sharing this information with team members, and iterating as needed. Most viewing software also has reporting capabilities that allow you to track, record, save, and share CPM results.

You can also log this information in your marketing software and / or CRM so that all things related to your marketing work and your customers are stored on a single platform.

Start by calculating the CPM

The CPM is a valuable metric for marketers and advertisers – it gives you an accurate understanding of your impressions.

As a result, you’ll get an insight into your brand awareness, which of your content and campaigns are viewed the most, and what is going down well with your audience.