CPM

🎯 What is CPM (Cost Per Mille)?

✅ Goal:

• Increase brand awareness and reach
• Boost visibility to a large audience

🏆 How CPM Bidding Works

Platforms like Facebook, Instagram, Google Display Network, and YouTube use an auction-based system to determine which ads get shown and at what price.

🔎 CPM Formula:

CPM=Total Ad SpendTotal Impressions×1000\text{CPM} = \frac{\text{Total Ad Spend}}{\text{Total Impressions}} \times 1000

🌟 Example:

• You spend $100 on a campaign.
• Your ad gets shown 25,000 times.

CPM =

10025,000×1000=4 USD (per 1,000 impressions)\frac{100}{25,000} \times 1000 = 4 \text{ USD (per 1,000 impressions)}

💡 How CPM Auctions Work:

1. Auction:
   Advertisers bid for impressions based on:

   • Target audience
   • Ad placement
   • Ad format

2. Relevance Score:
   Ad platforms assign a relevance score based on:

   • Engagement (likes, shares, comments)
   • CTR (Click-Through Rate)
   • Ad quality

3. Ad Rank:
   Higher relevance and engagement = Lower CPM

4. Payment:
   You pay based on the total number of impressions your ad receives.

🚀 When to Use CPM:

✅ When you want to:
✔️ Build brand awareness
✔️ Maximize reach
✔️ Increase brand recall
✔️ Promote new product launches
✔️ Gain visibility in a crowded market

🔥 CPM Strategies by Platform

1. Facebook/Instagram Ads

• Facebook allows you to set a target CPM or let the platform optimize it.
• You can choose between:
  • Awareness: Reach the maximum number of people.
  • Engagement: Focus on likes, comments, and shares.
  • Traffic: Drive people to a website.

✅ Best for:

• Story ads
• Carousel ads
• Video ads

2. Google Display Network (GDN)

• GDN allows you to reach people across over 2 million websites and apps.
• You can target:
  • Affinity audiences (based on interests)
  • In-market audiences (ready to buy)
  • Contextual targeting (based on site content)

✅ Best for:

• Banner ads
• Responsive display ads
• Gmail ads

3. YouTube Ads

• You pay based on:
  • CPV (Cost Per View) for skippable ads
  • CPM for non-skippable ads
• Best for increasing brand recognition through video content.

✅ Best for:

• In-stream ads (before or during a video)
• Bumper ads (6 seconds, non-skippable)

4. TikTok Ads

• TikTok offers a target CPM or automatic bidding option.
• Strong visuals and catchy music work best here.

✅ Best for:

• Short-form video ads
• Trend-based content

🎯 Types of CPM Campaigns

✅ 1. Awareness Campaign

• Goal: Show your brand to the largest possible audience.
• Best for:
  ✔️ Product launches
  ✔️ New market entry
  ✔️ Seasonal promotions

✅ 2. Engagement Campaign

• Goal: Increase likes, comments, shares.
• Best for:
  ✔️ Building a social following
  ✔️ Creating viral content

✅ 3. Retargeting Campaign

• Goal: Remind users about your brand after they’ve visited your site.
• Best for:
  ✔️ E-commerce brands
  ✔️ Abandoned carts

🏆 How to Lower CPM

🔎 1. Improve Ad Quality

• Create eye-catching visuals and strong headlines.
• Include a clear CTA (Call to Action).
• Use high-quality images or videos.

🔎 2. Improve Relevance Score

• Target the right audience.
• A/B test different creatives.
• Write compelling copy.

🔎 3. Optimize Ad Placement

• Adjust placements (e.g., mobile vs desktop).
• Test different platforms (Instagram Stories vs Facebook Feed).
• Remove underperforming placements.

🔎 4. Use Narrow Targeting

• Focus on:
  ✔️ Age
  ✔️ Gender
  ✔️ Location
  ✔️ Interests
  ✔️ Behavior

🔎 5. Test & Improve

• Test different ad formats (video vs static image).
• Analyze performance and adjust based on metrics.
• Retarget users who engaged with previous ads.

📊 Example CPM Performance Analysis

🔎 Insights:

✅ Campaign 1 = Best for low CPM + high reach
✅ Campaign 2 = Higher CTR → More relevant audience
✅ Campaign 3 = High CPM but high engagement

🌟 Summary: