Before going to jump on to understand what does CPM means we should know and understand what is digital marketing?
What is digital marketing?
Digital marketing is a type of marketing on which the internet, mobile devices, social media, search engines and other channels are used to reach consumers. Some marketing experts consider digital marketing to be a completely new endeavor that needs a new way to understand how customers behave if compared to traditional marketing.
Digital marketing targets a particular section of the customers base and is interactive. Digital marketing is on the rise and includes search result advertisements, email advertisements and promoted tweets and anything that incorporates marketing with customer feedback or a two-way interaction between customers and the company.
Digital marking differs from internet marketing, internet marketing is advertising that is only on the internet whereas digital marketing can take place through mobile devices, on a subway platform, in a video game and by a smartphone application.
In the parlance of digital marketing, advertisers are mostly referred to as sources, while members of the targeted advertisements are usually classed receivers. Sources frequently target highly particular, wee-defined, receivers. For instance, after extending the late-night hours of a number of its locations, one company has to get the word out.
It targeted shift workers and travelers with digital advertisements because the company knew that these people made up a huge segment of its late-night business, that company have encouraged them to download a brand new restaurant finder application, targeting them with advertisements that are placed at ATMs and gas stations and on websites that it knows and understands its customers frequented at night.
Now we are going to talk about some digital marketing channels-
Digital Marketing Channels
Here we are giving you a list of some important digital marketing channels-
- Website marketing
- Pay-per-click (PPC) Advertising
- Content Marketing
- Email Marketing
- Social Media Marketing
- Affiliate Marketing
- Video Marketing
- SMS Messaging
- Website marketing- A website is one of the important centerpieces of all digital marketing activities and a website is a very powerful channel but it is also the medium that is needed to execute a variety of online marketing campaigns. A website should represent a product, brand and service in a very clear, exclusive and memorable manner. A business website should be fast. mobile-friendly and easy to use.
- Pay-per-click (PPC) Advertising- Pay-per-click advertising enables marketers to reach internet users on different digital platforms through paid advertisements. Marketers can set up pay-per-click campaigns on different platforms such as Google, Facebook, Twitter, Pinterest, Bing and show their advertisements to a number of people who are searching for terms that are related to the services or products. Pay-per-click campaigns can segment users that are based on their specific interests or locations. The most famous pay-per-click platforms are both Facebook advertisements and Google advertisements.
- Content Marketing- Content marketing aims to reach potential customers by making use of content. Content is usually published on a website and promoted by social media, SEO, email marketing and pay-per-click campaigns, The equipment of content marketing are blogs, ebooks, online courses, infographics, webinars and podcasts.
- Email Marketing- Email marketing is one of the most effective digital marketing channels but there are a number of people who confused email marketing with spam email messages. It is the way to get in touch with your potential customers or the people who are interested in your business brand. There is a number of digital marketers who use all other digital marketing channels to add leads to their email lists and then by email marketing they make customer acquisition funnels to turn those leads into their loyal customers.
- Social Media Marketing- The primary aim of a social media marketing campaign is to create brand awareness and establish social trust. As you go in depth of social media marketing then you can use it to get leads or evens as a direct sales channel.
- Affiliate Marketing- Affiliate marketing is one of the oldest ways of marketing and the internet has brought a new life to this old standby. With affiliate marketing, influences could promote other business products and get a commission every time a sale is made. A number of well-known and well-established companies such as Amazon have affiliate programs that may put millions of dollars per month to other websites that sell their products.
- Video Marketing- YouTube has become the second most famous search engine and a number of users are turning to YouTube before they make a buying decision to learn something and read a review. There are a number of video marketing platforms such as Facebook Videos and Instagram that are used to run a video marketing campaign. Several companies find the most success with video by integrating it with SEO, content marketing and social media marketing campaigns.
- SMS Messaging- Non-organizations and companies also make use of SMS or text messages to send information about their latest promotions or give opportunities to willing customers. In this digital era, as technology has advanced, there are a number of text-to campaigns that also allow their customers to directly pay or give by a simple text message.
What is CPM?
CPM stands for cost per thousand impressions and it is used to measure how many thousands of people your advertising or marketing piece has left an impression. Cost per thousand is used in campaigns that are designed to be seen by a large number of people. So let’s have a look at how this works, which kind of campaign it works best in and where the conclusion comes from.
How does CPM work?
CPM is one of the online marketing metrics in which companies pay for the views of their advertisements. It is primarily used in advertising media selection, marketing that is related to web traffic and online advertising. Google advertisement is a platform that works on a CPM and a CPC basis. Because an impression is such a small thing and these numbers are typically measured in thousand or more. Unlike a cost-per-click (CPC) model, a cost-per-thousand (CPM) model measures a very high-level awareness of a business. Now the question arises how is the cost per thousand (CPM) measured?
So the formula is Cost per impression= Advertising cost/ 1000 impressions. This is CPM and all the strategies, methods, campaigns that are built around this metric are cost-per-thousand. The best results from this formula are found with digital marketers who have leveraged this into success for other competitive companies and themselves.
Now there is one more question how do campaigns target CPM as compared to other types of campaigns such as cost-per-click?
The cost of a CPM campaign is usually less than other compatible marketing strategies. Companies can grab more impressions for less amount of money than they can get guaranteed results in mot other marketing campaigns. Although, an impression can be difficult to measure and an impression can be counted any time the platform serves the advertisements which determines that an advertisement is viewable by their standards. Let us move on to where CPM metrics are commonly used and how it is can be used to cover the wider range of digital marketing.
Where do companies see the best outcomes from CPM strategies?
Companies see the best outcomes from cost-per-thousand strategists when they are used in a wider marketing campaign that is focused on raising awareness of their product or services or brand recognition. Because CPM strategies are so focused and targeted and they are not ideal for smaller, niche companies to appeal directly to a small subset of the population. They also do not do well if you need quantifiable results to back up your marketing dollar spend. To make a strong foundation for a cost-per-thousand strategy and make sure that you clearly understand your-
- Business goals and how a cost per thousand metrics will help you measure them
- Specific goals for your new strategy
- Definition of a lead
- Proper ways to follow up on your newly-generated customer awareness
But please do not use these strategies by themselves. The best outcome from cost per thousand (CPM) strategies and CPM marketing is always in tandem with another form of marketing that follows up on your leads and works on converting your new leads to new clients.
How does CPM is related to digital marketing?
Digital marketing has a number of different things. One of these is low-level awareness of the company, product or brand. That is where the cost per thousand strategies can boost digital marketing efforts to the pro level.
If no one knows about a company and they do not have a built-in niche market, where will customers come from? Cost per thousand (CPM) strategies are one of the great ways to raise awareness and brand recognition and this awareness primes people who are in search of the type of solution that is being offered. For instance, a company that has marked a new type of ballpoint pen might run a CPM camping across various websites to raise awareness.
Since there are a number of people that use a ballpoint pen and they want to do in this campaign is to raise awareness of various pens on the market. After, enough people know about the pen they can start more focused and targeted as they are designed to appeal to subsets of their customer base. There is another way of thinking about it is to look at the cost per thousand strategies at the top of the funnel strategy. They aimed to collect a wide amount of eyes on a piece of marketing and depend on other strategies to carry on the funnel.
Getting started with CPM marketing
To start a successful CPM marketing strategy, campaign or another method that is used in this strategy, a basic must be built on three things-
1. A proper knowledge of what a lead, awareness and what the cost per thousand means to your company and strategy.
2. An establishment budget for this part of your marketing that is separate from your overall budget.
3. A plan for the next steps in your overarching marketing strategy.