Frequently Asked Questions

The best advertising platforms depend on your target audience and goals.

Can I go digital as a new business? Absolutely! Digital marketing is a great way for new businesses to reach a wide audience.

In today’s rapidly evolving digital landscape, businesses have access to an impressive array of platforms that empower them to effectively promote their brand and services. From dynamic social media channels such as Facebook and Instagram, which not only foster community engagement but also facilitate meaningful interactions, to powerful search engines like Google that enable targeted advertising aimed at individuals actively seeking your offerings, the possibilities are both extensive and diverse. Moreover, embracing email marketing opens up avenues for direct and personalized communication with potential clients, while popular industry-specific websites and forums serve as valuable resources for connecting with niche audiences. For a new business, delving into these opportunities can substantially enhance your reach, engage your desired demographics, and ultimately foster growth in an increasingly digital age, making it an essential strategy for success.

What’s the difference between CPC and CPM advertising?

CPC (cost per click) means you pay only when someone clicks on your ad.
CPM (cost per mille) means you pay each time one thousand people see your ad, regardless of clicks.

CPM vs. CPC: Choosing the Right Model

Understanding the difference between CPM and CPC is crucial for selecting the right advertising strategy based on your campaign goals:

CPM (Cost Per Mille):
Best For: Brand awareness, broad reach, and high-visibility campaigns.
Advantages: Predictable costs, extensive reach, effective for visually engaging ads.
Considerations: Not directly tied to user actions like clicks or conversions.

CPC (Cost Per Click):
Best For: Performance-driven campaigns focused on driving traffic, leads, or sales.
Advantages: Payment based on actual user engagement, potentially higher ROI for conversion-focused goals.
Considerations: May require higher management to optimize for clicks and conversions.

Choosing Between CPM and CPC:

If your primary goal is to increase brand visibility and reach a large audience, CPM is likely the better choice.
If you aim to drive specific actions, such as website visits or product purchases, CPC may be more effective.

Combining CPM and CPC Strategies

Many advertisers find value in using both CPM and CPC strategies within their campaigns to balance brand awareness with direct engagement. For example, a campaign might start with CPM to build awareness and later incorporate CPC to drive conversions as the audience becomes more familiar with the brand.

Example: A fitness brand launching a new line of workout gear could use CPM to create widespread awareness through display ads on fitness websites and social media. Subsequently, they might use CPC to target users who have engaged with their ads by clicking through to the website, encouraging them to make a purchase.
Measuring the Success of CPM Campaigns

To evaluate the effectiveness of CPM campaigns, consider the following metrics:

Impressions: The total number of times your ad was displayed.
Reach: The number of unique users who saw your ad.
Frequency: How often each user saw your ad on average.
Engagement Metrics: While CPM focuses on impressions, tracking secondary metrics like brand recall surveys or social media mentions can provide insights into ad impact.
Brand Lift Studies: These studies measure the increase in consumer perception and awareness resulting from your campaign.

Example: A beverage company running a CPM campaign might track the number of impressions and reach, alongside conducting brand lift studies to determine if awareness and positive perception of their new product have increased among the target audience.
Conclusion

CPM (Cost Per Mille) is a powerful advertising model for achieving widespread brand visibility and reaching a large audience. By paying for every thousand impressions, advertisers can ensure their message is seen by many, making it ideal for campaigns focused on brand awareness and market presence. However, it’s essential to align the choice of CPM with your campaign objectives and continuously monitor performance to ensure that the increased visibility translates into desired outcomes, such as improved brand recognition or eventual customer engagement.

CPC (Cost Per Click) is an online advertising model in which advertisers pay only when a user actually clicks on their ad. This means that the advertiser is not charged when the ad is simply displayed (known as an impression), but only when it actively engages a potential customer by prompting them to click on it.

How CPC Works

In a typical CPC model, advertisers set a bid, which is the maximum amount they are willing to pay for each click on their ad. The actual cost per click can vary depending on factors such as the competitiveness of the keyword, audience targeting, and the quality score of the ad (particularly in platforms like Google Ads). The higher the bid, the more likely an ad will appear in prominent positions within search results or display networks.

For example, if an advertiser is running a Google Ads campaign and bids £2.50 for a keyword like “best running shoes,” they will pay up to£2.50 for every time someone clicks on their ad that appears when someone searches for that term. If 100 people click on the ad, the total cost would be £250.
Benefits of CPC

The main advantage of CPC advertising is that you’re only paying for actual engagement—i.e., when users show genuine interest in your ad and click on it to learn more. Unlike CPM (Cost Per Mille) where advertisers pay for every 1,000 impressions regardless of whether users interact with the ad, CPC ensures you’re paying for performance, making it a more cost-effective option for advertisers focused on conversions.

For instance, if a retailer wants to drive traffic to an online store, paying for clicks ensures they’re only charged when someone visits their site, not just when the ad appears. This model is particularly valuable for businesses focused on lead generation or e-commerce, where attracting potential buyers to the site is crucial.
Examples of CPC Platforms

There are several platforms that use the CPC model, including:

Google Ads: One of the most popular CPC advertising platforms. Advertisers bid on keywords, and their ads are shown on Google’s search engine results page (SERP) or on its display network. The cost of a click can range from a few cents to hundreds of dollars, depending on the keyword and competition.

Example: A car dealership might bid on the keyword “buy new cars,” with a CPC of £5. If 10 people click on the ad, they’ll be charged £50, even if those clicks don’t lead to an immediate sale.

Facebook Ads: Facebook offers a CPC bidding option where ads appear in users’ news feeds or on Instagram. The CPC can vary based on targeting factors such as age, location, or interests.

Example: A local bakery could run a Facebook ad targeting users in their city who are interested in baking. They might set a CPC bid of £1, meaning they would pay £1 for every person who clicks on the ad and visits their website.

LinkedIn Ads: For B2B marketers, LinkedIn offers CPC advertising that allows businesses to target professionals based on job title, industry, or company size.

Example: A software company targeting HR professionals might run a LinkedIn campaign with a CPC bid of £8 for each click. While this might be a higher cost compared to platforms like Facebook, it allows for precise targeting of a specific, high-value audience.

Factors That Affect CPC Costs

Competitiveness of Keywords: In Google Ads, for example, more competitive keywords (such as “insurance,” “lawyer,” or “mortgage”) tend to have higher CPCs because many advertisers are bidding for the same keywords.

Example: The keyword “best personal injury lawyer” may have a CPC of £100 or more due to high demand in the legal industry.

Ad Quality: Platforms like Google use a metric called “Quality Score” to determine how relevant your ad is to users. Higher-quality ads often result in lower CPCs because they provide more value to users.

Example: If two advertisers are bidding on the same keyword, the one with a more relevant ad and landing page (e.g., optimized content and fast-loading website) will pay less per click.

Audience Targeting: The more specific or niche your audience, the higher the cost might be. For example, targeting a broad audience will usually result in a lower CPC, while targeting a narrow demographic (such as “CEOs in New York City”) might increase CPC because it’s more competitive and harder to reach.

Device & Location: CPC can also vary based on the user’s device (mobile vs. desktop) or geographic location. Mobile ads might have a lower CPC compared to desktop ads, while targeting users in high-demand regions (like large metropolitan areas) could increase costs.

Example: A mobile gaming company running ads targeting users in developing countries might see a CPC as low as £0.05, while targeting U.S. users might cost significantly more, perhaps $1 or more per click.

When to Use CPC

CPC advertising is ideal for businesses that are looking to drive specific actions, such as website visits, sign-ups, or purchases. If your goal is to generate traffic and leads, paying per click ensures that you’re spending your budget efficiently, as every dollar goes toward attracting interested users.

For example, if a SaaS company wants to drive free trial sign-ups, it might run a CPC campaign targeting users searching for “best CRM software.” By paying only when a user clicks on the ad and visits the site, they can maximize their budget by focusing on engaged leads.

In summary, the CPC model is highly performance-based, offering businesses a way to control costs and pay only for the interactions that matter—clicks that can potentially lead to conversions. However, it’s important to continuously monitor campaigns to ensure that clicks are translating into meaningful outcomes, such as sales or leads, and adjust strategies based on performance data.

What is CPM (Cost Per Mille)?

CPM (Cost Per Mille) is an online advertising model where advertisers pay a fixed amount for every one thousand times their ad is displayed, regardless of whether the ad is clicked or not. This model is primarily focused on increasing brand awareness and visibility rather than direct user engagement.
How CPM Works

In the CPM model, advertisers pay for ad impressions—the number of times their ad is shown to users. The cost is calculated per thousand impressions. For example, if an advertiser has a CPM rate of £5, they will pay £5 for every 1,000 times their ad is displayed.

Calculation Example:

CPM Rate: £5
Number of Impressions: 10,000
Total Cost: (10,000 / 1,000) * £5 = £50

Benefits of CPM

Brand Awareness:
Wide Reach: CPM is ideal for campaigns aiming to reach a large audience and increase brand visibility.
Consistent Exposure: Ensures that the ad is seen by a substantial number of people, which can help in building brand recognition over time.

Cost Predictability:
Budget Control: Advertisers can easily predict and control their advertising costs based on the number of impressions they aim to achieve.

Effective for Visual Campaigns:
High-Impact Ads: Suitable for display ads, video ads, and other visually engaging formats that benefit from being seen multiple times.

Example: A new beverage company launching a nationwide campaign might use CPM to ensure their ads are seen by millions, thereby increasing brand awareness and establishing a presence in the market.
Examples of CPM Platforms

Display Advertising Networks:
Google Display Network: Advertisers can pay CPM to have their banner ads displayed across millions of websites within the network.
Example: An online clothing retailer might run a CPM campaign to showcase their latest summer collection on fashion blogs and lifestyle websites, paying $4 CPM to reach a broad audience.

Social Media Platforms:
Facebook and Instagram: Both platforms offer CPM pricing options for promoting posts, stories, or display ads to increase visibility.
Example: A tech startup might use a CPM campaign on Facebook to promote a new app, targeting users based on interests and demographics to maximize exposure.

Video Advertising Platforms:
YouTube: Advertisers can use CPM to pay for video ad impressions before or during other videos.
Example: A movie studio could use a CPM campaign on YouTube to promote a new film trailer, ensuring it reaches a wide audience before the movie’s release.

Programmatic Advertising:
Real-Time Bidding (RTB) Platforms: These platforms use automated systems to buy ad impressions across various websites at CPM rates.
Example: An automotive brand might use programmatic CPM to display ads on automotive news sites, blogs, and forums to reach car enthusiasts.

Factors That Affect CPM Costs

Audience Targeting:
Broad vs. Niche Audiences: Targeting a broader audience typically results in lower CPMs, while targeting a specific, niche audience can increase CPM due to higher competition.
Example: Advertising to all internet users might cost less per thousand impressions compared to targeting only finance professionals.

Ad Placement:
Premium vs. Standard Placements: Ads placed in premium locations (e.g., above the fold on high-traffic websites) generally have higher CPMs.
Example: A banner ad on the homepage of a popular news site will cost more per thousand impressions than on a smaller, less trafficked blog.

Ad Format:
Rich Media vs. Static Ads: Interactive or rich media ads (like video or animated ads) often have higher CPMs compared to simple static images.
Example: A video ad on a streaming platform may have a higher CPM than a standard banner ad due to higher engagement potential.

Seasonality and Demand:
High-Demand Periods: During peak advertising seasons (e.g., holidays, major events), CPM rates can increase due to higher competition.
Example: CPM rates typically rise during the holiday season as more advertisers vie for ad space to promote their holiday sales.

Geographic Location:
Target Regions: CPMs can vary significantly based on the geographic regions being targeted. Ads targeting affluent or highly populated areas usually have higher CPMs.
Example: Advertising in major cities like New York or London often costs more per thousand impressions compared to smaller towns or less competitive regions.

Ad Quality and Relevance:
Quality Scores: Platforms like Google use quality scores to determine the relevance and quality of ads. Higher-quality ads can sometimes benefit from lower CPMs due to better engagement rates.
Example: An ad with a high click-through rate (CTR) and relevant content may achieve better placement at a lower cost.

When to Use CPM

CPM is best suited for campaigns with objectives centered around:

Building Brand Awareness: When the goal is to make a brand or product known to a large audience.
Reaching a Wide Audience Quickly: Ideal for new product launches or major announcements that require extensive visibility.
Ensuring High Visibility: When consistent and repeated exposure to an ad is necessary to influence consumer behavior over time.

Example Scenarios:

Product Launch:
A tech company releasing a new smartphone might use a CPM campaign to ensure the ad is seen by millions, creating buzz and anticipation before the launch date.

Event Promotion:
An organization hosting a global conference could use CPM to advertise across various websites and platforms, maximizing reach and attracting a diverse audience of potential attendees.

Brand Awareness Campaigns:
A nonprofit aiming to raise awareness about environmental issues might use CPM to display their message widely across different media channels, reaching as many people as possible to encourage action and support.