With time we are moving towards a digital world where smartphones, computers, and the internet are a day-to-day necessity. With such a scenario, marketing took a new approach to attract customers online from across the world. They use various ways such as SEO, content marketing, email marketing, pay per click, cost per impression through paid online ads, and more. Here we will put the CPM method in detail.
CPM stands for cost per thousand impressions or cost per mille, where the M stands for mille, it is the roman numerical for thousand. It is a method for pricing online advertising and digital marketing. In simple words, the advertiser pays the website or web page owner to display advertisements. The cost per impression rate depends upon the type and objective of the campaign.
Cost Per Impression Twitter
In Twitter, it might be free of cost to surf through this social media network. However, the online advertising banners which you see on your screen aren’t free. The advertisers use Cost per thousand impressions to promote their products or spread a message. When the users open the website and view those ads, they provide impressions. The impression is a metric that is considered a measurement of engagement that an advertisement receives. Cost per thousand impressions is just another way of paying online advertisement, the price one pays totally depends on the willingness of the company or institution. The factors include how and where the advertisement is showcased. Platforms such as Twitter might be slightly more expensive due to their credibility which attracts companies to make investments here. This results in increased competition among online ads.
What is CPM?
CPM stands for cost per thousand impressions. This model is used best for spreading awareness of a start-up or grow brand recognition. Unlike cost per click, here only the number of views is considered for payment. But one must not confuse the number of viewers a page has in a day with the amount per thousand impressions an advertiser will pay. One must not confuse viewers on a page as the amount an advertiser will pay. In case there are two ads displayed on a page, the company will pay for each individually.
If a website charges $5.00 CPM, then the company will pay $5.00 for every 1000 impressions on its online advertisement.
How is it calculated?
To determine CPM, divide the total budget spend by the total number of impressions and multiply it by 1000.
The cost per impression formula is- CPM = total amount spent in campaign ÷ total number of Impressions received X 1,000.
[To calculate cost per click, CPC = Total Campaign Spend ÷ Total Click Throughs]
Cost per impression on Twitter
This social media network is a platform to exchange hundreds and millions of tweets each day. Twitter has comparatively less traffic than other social media platforms such as Facebook and Instagram. Twitter has only 232 million active users and 500 million tweets posted per day on average. Yet this platform is quite beneficial for advertising brands and promoting products. The Twitter ad can become an opportunity for attracting new viewers and leads for companies.
Types of Twitter Ads
- Promoted accounts
- Promoted moments
- Automated ads
How To Advertise on Twitter
- One must set up a Twitter ads account first, through ads.Twitter.com the account will get access to Twitter Ads Manager along with all its features.
- There are various objectives of advertising. One must decide the goal one aspires to achieve through Twitter ads. Such as awareness, where you want robust traffic of viewers to promote your tweet. It will be billable with a cost per 1000 impressions.
- Put the account on the ‘ad group setup’. Gradually when one gains experience with Twitter ads, divide the campaign into categories to target a specific audience, choose timeframe, budget, pacing accordingly as per requirements.
- If you desire to, then you can put your account up for automatic bidding. When the campaign launches, it takes part in the Twitter Ads auction, there it will take part in a competition against other ads targeted towards the same audience. The ad which wins the auction gets served on the platform. The factors involved are whether the ad is relevant to the targeted audience and the bid set.
- Choose ad placement, in other words, where you want the ad to display.
- Ready to launch the campaign!
How Much do Twitter Ads Cost?
There is no fixed rate or minimum budget to advertise on Twitter. The billable action depends on the campaign objective one chooses. It can be as much as someone is willing to pay. Each campaign objective has a different rate.
However, to spread awareness CPM method is beneficial. The rates of cost per thousand impressions are set on social media platforms. The average CPM rate is usually higher than the cost per click, as one is paying per 1000 impressions versus one click. The current average CPM rate for Twitter is $ 6.46, which was $5.92. It continues to rise due to higher bidding.
To gain maximum benefits from the CPM marketing method, companies or individuals must understand that this method is used as an objective to spread awareness. A company or brand that wants to increase its recognition can leverage its resources. A particular amount must be kept aside solely for investing in CPM. As CPM alone does not provide much profit it only helps the companies to get viewers for a marketed piece and create an appearance.
Along with its cost-effectiveness and other benefits mentioned, it comes along with cons as well.
- This investment is worth making on platforms with robust traffic.
- On low-traffic websites, it is not going to make any impact.
- In high traffic pages, ads will face higher competition, for which one might have to invest more, resulting in increased expense.
- And the measurement of results is difficult as duplicate viewers count can cost the advertiser extra charges.