Why CPM is Becoming Redundant

Many online marketers believe that the secret to sales success lies in numbers alone. To some extent, this is absolutely true. Higher click-through rates and inbound traffic will naturally equate to the better chances of a conversion. This is one of the reasons that the term “cost per mille” was quite relevant in the past. Otherwise known as CPM, this is a figure that represents the amount of money that a business is willing to pay per 1,000 (hence the Latin term mille) advertising impressions. According to Google, CPM is a system that is best used by companies that are looking to increase their brand awareness. Brand awareness is an important idea to keep in mind. Why is this the case?

The Changing Landscape of Online Exposure

CPM strategies were heavily used during the days when pay-per-click (PPC) advertising represented a worthwhile revenue generation stream. However, these times have changed. There are a few reasons for this.

First, potential clients are much less likely to click on an advertisement in order to view a specific product or service. This can also be seen as a shift towards organic search results as opposed to paid promotions and banner ads. So, CPM has much less of a hold within the marketing industry.

The second trend that has effectively taken the appeal out of CPM is the “cost” factor. Companies will bid on this service in an attempt to capitalise on their brand awareness, but the same (if not better) results can now be achieved thanks to the rise of social media.

Less Branding and More Interaction

It actually seems quite odd that brand recognition was said to be the most advantageous quality of CPM bidding. On the contrary, companies are now looking for an INTERACTION with their demographic as opposed to mere recognition alone. This can hardly be achieved with inbound hits. Such success will instead be caused by real-time engagement, blog responses, social media exchanges and even automated newsletter delivery.

Putting the “Human” Back Into Data-Driven Marketing

While there is nothing inherently wrong with CPM, many feel that it has become redundant alongside other mass purchasing strategies such as programmatic buying. Online enterprises are utilising a scalpel to achieve their exposure needs as opposed to a broadsword. To put it simply, CPM has seen as being somewhat of a waste of time in reference to modern marketing methods. While it may indeed gain more impressions, it will NOT affect such key metrics as click volume, click-through rates and the cost per click.

So, we can see here that CPM has seen better days. Although these is nothing wrong with employing this as a small portion of an overall marketing strategy, relying upon this method alone will not produce the results that are desired. The Internet has taken a very humanistic approach regarding marketing techniques. CPM is simply outdated in comparison to more proactive strategies that are now being embraced throughout the digital world.

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