Cost per mille (CPM), otherwise called ‘cost per thousand,’ is an essential metric for advertisers. Specifically, the CPM measures the number of times people view an advert regardless of the medium. As such, advertisers must compare CPM of different mediums such that they can identify the most relevant for their ad campaign.
Let us compare CPM of TV, digital media and billboards
As an advertiser, you already know the target audience for your ads. It is the part of the consumer base that you would like to inform you about a new product or service. However, how do you know that the medium you are using is the right one for you? The CPM is the right place to begin the search.
TV is one of the most dominant advertising mediums in the world. According to Imarc, more than 1.6 billion households have TVs worldwide. It makes the medium ideal for advertisers to put their brands before billions of people in a short period. Imarc revealed that the global TV ad market hit $255.8 billion in 2018.
Given the number of people watching TVs across the globe, the CPM is among the highest in the industry. In 2008/2009, advertisers paid $16.80 as CPM for upfront ads in US broadcast Primetime TV. Comparatively, the same ads attracted $9.17 CPM in cable TV. Over the years, the CPM has increased to reach $29.01 CPM for broadcast and $15.94 CPM for cable in 2017/2018.
On the other hand, the CPM for advertising on social media was $5.35 on average in Q3 2019. However, Statista expects the CPM to increase to more than $6 in the last quarter of 2019 since digital platforms have more visitors during this period. Also, more brands jostle for advertising space during the quarter. The CPM for billboard ads lies between $1 and $15, but this depends on the display time, location, and whether the billboard is static or digital.
How does this compare to in-the-hand advertising?
If we compare the CPM of TV advertising, digital, and billboard ads, you realize that in-the-hand advertising is the most cost-friendly. Notably, in-the-hand marketing utilizes unconventional advertising concepts that do not attract extra costs. Once advertisers pay for the design of the ad, and they deliver them to the target audience, there is no more expenditure.
For example, consider an advertiser who uses door hangers to reach the target audience. The only costs the advertiser will incur are getting the door hangers ready and delivering them to target households. Sure, the CPM for door hangers is free, and you can hardly believe it because it generates more brand engagement than TV advertising.