Digital Marketing: CPM Is More Cost-Effective
In digital marketing, CPM refers to cost-per-thousand impressions (also known as ad views.) It is important to make the distinction between impressions and clicks; an impression is any time the content is shown to someone. Pay-per-click is a different pricing model where you are only charged if your ad is clicked on, and applies primarily to SEO and affiliate marketing. CPM is how streaming media is typically priced.
Most companies require a minimum spend amount, but depending on keywords, platforms, and locations, you could pay as little as $2 for 1000 views of your ad utilizing CPM for digital marketing. For example, if you contract for $1000 at $2 CPM, you are buying 500,000 views. That is a lot of exposure for a relatively small advertising budget.
Streaming ads have been around for years, but 2021 brought ad-supported streaming to the forefront like never before, and it expected to continue its explosive growth. On demand media is providing more and better advertising solutions than ever, whether it’s streaming media at home or shown on gas pumps and in doctor’s offices.
Streaming became the most common way Americans watched videos in 2020. Partially due to the pandemic, more households used a streaming service than subscribed to cable for the first time ever. The trend did not end with lockdowns, however. Streaming households have now reached a new all-time high. 82% of US households with broadband connections currently use streaming platforms. Only 70% pay for traditional television services like cable and satellite.
Traditional television advertising is still valuable, but there is a clear trend toward digital media, particularly advertising supported video on demand (AVOD) and over-the-top (OTT), which refers to media streamed through a website or app without a subscription to a cable or satellite provider.
It is estimated that over half of all internet users will be using an AVOD service by 2024, and OTT growth is set to surpass digital video this year. In fact, there are now more subscriptions to video streaming services than people in the United States. Simply put, digital marketing with CPM pricing is currently the most cost-effective and versatile way to get your brand out there!
One of the most important differences to your business between digital marketing and traditional marketing is not in the delivery mechanism but in the nearly real-time ability to analyze marketing campaigns and understand what is working and what isn’t.
Your campaign strategies and platforms, digital or traditional, should always increase your visibility and engage with your target audience as well as being continuously monitored, measured and adjusted for optimal results.
When you’re a small business owner digital advertising can seem intimidating. REAL Moxie is a full-service marketing agency dedicated to creating solutions. We are not limited to specific industries or professions, and we do not use cookie-cutter, one-size-fits-all solutions. Since the goal of digital advertising is to spread the word about your products and service, we produce customized strategies that align with your unique business goals.
For more information about digital advertising and to schedule your FREE consultation, contact REAL Moxie, LLC today.