I work as an assistant to an influencer, and I’m still learning all the nuances of marketing. The term CPM has come up in quite a few emails. I’ve researched it and read articles and done the calculators but it’s just not sticking in my brain. Somebody help me out please.
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It’s cost per 1000 impressions. Online avertising has a few different payment models — CPM is cost per 1000 views, CPC is cost per click (somebody clicks from the place where ad ran to the site of the advertiser), CPA (a commission is pay when an acquisition is made, such as a lead form filled out or a purchase made).
CPM = Cost Per Mille AKA Cost Per 1,000. In this context it means cost per 1,000 views/impressions. Mille = latin for 1,000.
AKA “I have a social media account and I can advertise your product or service for you, my going rate is $x per 1,000 views” where $x is the CPM.
Influencers are able to track these impressions differently based on the platform that they’re using.
Instagram has an API (or they used to). This API lets people share specific bits of data. This means that if you spend money on an influencer marketing campaign, they can give you a login on a third-party service or some other way to access data in order to track how many impressions your influencer has gathered for you.
Other platforms, like TikTok, are measured just by how many views the system displays publicly.
CPM is used all over internet marketing, and not just for social media. Our blogs have a very specific CPM that we need to achieve in order for an ad network to be worth it.
CPM varies A LOT based on niche, number of followers, user interaction (what % of their views are converted into likes/shares/comments/etc), and a few other factors.
Example: I want to advertise my new service with an influencer who is in a related industry and has great engagement. They say “Okay, my CPM is $x” and you know that means that if you want 50,000 views on their post about you, that you will be paying $x multiplied by 50.
So a $5 CPM for 50,000 views will cost $250.
Another influencer with much higher engagement in the same industry might charge $10 CPM, so those same 50,000 views will cost $500 BUT you’re more likely to get more shares and comments from this second influencer.
Cost Per Mille. (mille means 1000 in french)
It is how much they are going to pay your influencer per 1000 views.
Say you agree to put an ad on your influencer’s video for $3 CPM.
Turns out, your influencer gets 1000,000 views.
1000,000 views at a cost of $3 per 1000 views, quick maths: $3000 payment.
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