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What type of CPM Fits Your business And Why A Cheap CPM May Not Be The Best

Updated: May 4, 2022

Cost per mille (CPM) is a strategy that is used to make tons of impressions on customers for a low price.

When it comes to CPMs though, the quantity of impressions doesn’t always mean the quality matches. The value behind making tons of impressions is always good for your business as it is so cheap but doesn’t mean that you should stick to low price CPMs if you don’t have to.

Let’s address what a CPM is. Cost per mille is the price you pay for every 1000 impressions. For example, 1000 email advertisements may cost you around $1, this price would be your CPM.

In recent years, marketers have become more advanced in their technology and thus expectations are as well. Marketers have been doing email and web marketing for years now, but the difference in quality between a cheap promotion and a pricier one shows tremendously.

How To Know If A CPM Is Good For You, or Not.

Unfortunately, there is no distinct way to know if a CPM is good for your business or not, as it depends on different aspects of your business. Mainly, it depends on two things, the tactics you are using, and your overall campaign goals.

Displaying ads on a website may get you impressions for well under $1.00; while this may get you a lot of impressions, the effectiveness of this may not be as beneficial if you’re trying to reach certain goals. If you’re trying to reach specific performance and acquisition goals, this approach will unlikely benefit you.

If there are specific goals set in mind about how your marketing campaign will drive your outcome, cheaper marketing tactics won’t be the best for your business.

Different Types Of CPM

There are a few types of CPMs. Some reach a broader target, while some reach only a handful of potential customers. Each type of CPM marketing focuses on different customers and gives you different outcomes. There is Contextual, Broad, and Niche data marketing. Although there are subcategories and lesser-used types of CPM approaches, these are the most useful and display the direct difference in prices and outcomes.


Let’s start with the most common CPM, Contextual; this ranges from $1-4 and displays advertisements on websites that are related to your product. Although this can prove to be effective on the right websites, many people will tend to completely ignore these ads and focus on what they came to the website for.

An example of this would be advertising cooking utensils on a website that features an article about great recipes for the winter. Although this may catch some people’s eyes, this approach tends to be relatively ineffective for specific campaigns.

There is a separate subcategory for contextual marketing though, which focuses on contextual keywords. This means that your ads will show up to people who search for your designated keywords that you decide should represent your advertisements. This is a bit more costly but would be more direct and reach customers who are looking for a specific product or searching up something more specific to what you’re offering.

Broad Data Targeting

Broad Data targeting also has a similar approach to contextual marketing but reaches users who have shown interest in your type of product in the past. For example, by using cookies, sites can track who shows interest in your products and/or products like yours, and then shows your advertisements to them only, instead of random people. This type of CPM is a bit more costly, although proves to be more effective than strictly contextual marketing.

This would be useful when observing the market and seeing which products do well, and which ones don’t. Although the CPM would be a bit more expensive, the results would give you better feedback on your products and allow you to analyze your products and where they sell the most.

Niche Data Targeting

To get more specific, there is also niche data targeting. Niche data targeting is like broad data targeting, although it gets a lot more specific. Rather than focusing on people who have shown interest in your product or products like it, it focuses on an audience with specific needs and wants, which is then met by your advertisements.

This form of advertising is more expensive, but in turn, offers your products to people that would see a direct need for it. Typically, you would use this approach when selling a very specific set of products that only a handful of people would see use in.

For example, this would be useful when advertising products for people who have pet snakes. There aren’t many people with pet snakes, so if you chose another strategy, your ads would likely be shown to people who read an article about snakes or showed interest in getting one.

When it comes to CPM, always think of quality before quantity. The quality of your ads and products will speak for themselves and your ads will be more effective since they reach a more specific group of people.

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