CPM Advertising

By: EconomyWatch   Date: 30 June 2010

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EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

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How Do Marketers Allocate Their Media Budgets

Short Answer:

By outsourcing the problem to a media agency!

Long Answer:

By understanding the media consumption habits of their target audience, and then building and testing complex models that seeks to maximise the revenue or awareness impact using reach, frequency and engagment metrics

Moving Beyond ‘Last Touch’ Attribution

Monarch Airlines improved on the traditional media strategy based on “last click” by analysing the customer journey. As a result of re-allocating media spend based on the unique Media Mix data, Monarch has lowered their cost per acquisition by 73% … they can now make commercial decisions with confidence with results of real cost savings without sacrificing vital booking volumes.

Looking at the complete "customer journey" helps to understand the impact of display advertising on eventual purchases or other forms of customer acquisition.

The most common form of display advertising is CPM advertising.

Metrics: Cost Per Thousand Impressions (CPMs)

The Question:

How much do impressions cost to buy?

Approach:

Cost per Thousand Impressions

Commentary:

Cost Per Mille is latin for Cost Per Thousand. So CPM becomes the cost per thousand impressions. When a media is bought in this way it is measured in CPM. When it is bought in another way, we measure eCPM or effective CPM. This allows us to compare media costs for different media or channels

The Formula:

CPM or eCPM= Cost of Advertising ($)/ (Impressions Generated / 1000)

Sales & Marketing

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Measuring, Marketing, Metrics & KPIs

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