If you’ve been anywhere near Google Trends lately, you’ve probably noticed it: searches related to online advertising and CPM (cost per 1,000 impressions) are having a moment. And honestly, we get it. With so many channels, metrics, and strategies out there, it can feel like everyone’s chasing that magic formula for ad success. The good news? We’ve been deep in the online advertising game for a while, and we’ve learned what actually works (and what’s just hype).
What is CPM in digital marketing?
CPM and CPC (cost per click) are two of the main pricing models in paid advertising. CPM charges you based on how many people see your ad, while CPC charges you when someone actually clicks on it. Both have their place depending on what you want to achieve.
CPC is pretty much what it sounds like. You pay every time someone clicks on your ad. It’s all about getting users to do something, like visit your site or make a purchase. Think of it as a performance-focused strategy. You’re not just out there building brand awareness. You’re paying for clicks that lead to action.
On the flip side, CPM represents how much you were charged per 1,000 impressions for a given ad. Instead of chasing clicks or sales, the goal here is to get your brand noticed, boost visibility, and reach as many eyeballs as possible. Think of an impression like your ad waving hello. If it loads on the page, it counts!
Why brands are switching up their digital advertising with CPM.
Ads that charge on a CPM model are a great way to expand your awareness funnel and get your brand in front of more of the right people. It’s perfect for that top-of-funnel magic by building visibility, sparking interest, and helping future customers get familiar with who you are and what you offer.
For example, if you’re a Portland digital marketing agency, your ads might appear on industry blogs, marketing newsletters, business strategy forums, and other places where potential clients are looking for solutions like yours. You can also fine-tune where your ads show up using tools like keyword targeting, topic targeting, and more, so you’re reaching the right audience without wasting your budget.
CPM is cost-effective and broad-reaching, and when you pair it with email, social, and search campaigns, it helps lay the groundwork. That way, when people are ready to buy, your brand is already top of mind.
Wondering how to start with paid advertising (and where CPM fits in)?
Start testing early and often. The best results come from smart experimentation, not guesswork. Here’s how to get your footing and build a campaign that actually converts.
Test multiple platforms and placements.
It’s hard to know which sites or placements will perform best so start by trying a mix of options. Some good places to begin are Google Ads for broad reach across websites and YouTube, Meta Ads on Facebook and Instagram to target specific audiences, and YouTube Ads for building awareness with video.
Don’t forget Microsoft Ads on Bing as they often have less competition and can deliver great results. Native ad networks like Taboola and Outbrain are also worth testing to reach people through content-style ads on popular sites.
Test everything! Not just where, but how.
It’s not just about where your ads pop up; it’s also about what you say and how you say it. Think of it like trying on outfits. You want to see what fits best and makes you feel amazing. So, mix it up and test:
- Text ads, image ads, and video ads to see which style steals the show.
- Different headlines, offers, and calls to action to test what gets people excited.
- Various ad sizes and placements, especially on display networks.
- Landing pages and messaging to ensure your vibe matches your visitors.
- Broad versus narrow targeting to find out who your ideal audience is.
CPM vs. CPC: Which one’s right for you?
It really comes down to what you’re trying to achieve. Want to get your brand in front of as many eyeballs as possible? CPM is your go-to. It’s great for building awareness and pushing your message out to a wide audience. Think display or video ads.
But if you’re more focused on reaching people who are actively searching for what you offer, CPC is the better play. These ads show up right when someone is looking for something specific, which makes them perfect for driving clicks and conversions.
Here’s the real secret: most great campaigns use a mix of both. Some ads are all about impressions, others are all about clicks. Most effective campaigns use a mix of CPM and CPC, depending on your goals. It often takes some experimenting to find the right balance. At Mad Fish, we help clients make informed decisions about their paid media marketing based on data and what’s actually working, not guesswork.
Connecting you to customers through paid media & digital advertising
We strategize, build, and optimize digital ad campaigns to make the most of your budget and support your goals whether that’s generating leads, driving sales, or increasing visibility. Our team works across paid search, programmatic, social, and other channels, always focused on what success looks like for you.
You’ll hear from us regularly, with clear updates and full transparency into how your campaigns are doing.
Have questions or want to get started? Connect with us today.