Digital Marketing ads using Cost per impression pricing is one of the best digital marketing ad format for certain ad formats. CPM stands for Cost per 1000 Impressions (number of times the ad is shown) (M is Roman numeral for 1000). Generally, display advertising (e.g. banners) is sold in CPM. If the ad is shown 1000 times the cost will be equal to 1 CPM price. The Media Ant is a digital marketing agency which gives you the best advice on Digital marketing services & bidding options.
The total cost which you will have to pay while bidding on CPM basis is:
Total Cost = Total Impressions * (1000/CPM)
Comparing CPM to CPC and vice versa
The goal of digital marketing using one model versus the other is really dependent on what you are trying to achieve. If your objective is to generate Brand awareness then you might engage in display advertising which will most likely be sold in CPM model. While search ads on Google or text or display advertising on Google Ad Network are sold in CPC model. Although there is no hard and fast rule to this, you can go for CPC in Display ads & CPM for Text ads aslo depending on the click through rate. If you are new in Digital marketing & are not expecting many clicks on your digital ad, you should go for CPC to check what is your click through rate. If your click through rate increases at a certain level that CPM will be more cost effective to you, you should switch to using CPM pricing model than CPC.
Often you will end up comparing two models to figure out where and how to spend your money effectively. To do direct cost comparison you will need to convert CPM to CPC or CPC to CPM pricing.
CPC to CPM conversion
Below is a formula that you can use to calculate a CPM equivalent of a CPC model
CPM = (CPC*Clicks*1000/Total impressions)
Most of the top Digital advertising platforms like Facebook, Google Adwords, LinkedIn, Youtube offer CPM marketing option. Usually Display & video ads have CPM as the Digital ad pricing model. The range of the Cost per click differs from platform to platform.
The Media Ant as one of the top digital marketing agencies in Bangalore gives you a lot of website options to advertise on using CPM bidding model. The top 10 websites & apps across different website genres are:
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The Media Ant provides CPM bidding option across websites of different categories & genres. You can contact us for any queries in Digital marketing by writing to us at email@example.com or calling us at +91 80674 15510.