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C
Cost per thousand Impressions (CPM)
Definition
Cost per Thousand Impressions (CPM) is a pricing model where advertisers pay for every 1,000 times their ad is displayed to users. It is commonly used for brand awareness campaigns rather than direct conversions.
Expanded Explanation
Formula:
CPM = (Total Campaign Cost ÷ Total Impressions) × 1,000
CPM focuses on maximizing visibility rather than immediate clicks or leads. Companies pay based on ad views, making it ideal for reaching broad audiences in the early stages of the buyer’s journey.
For B2B SaaS and consulting businesses, CPM is valuable because:
Brand Authority: Establishes credibility with niche audiences
Audience Education: Familiarizes prospects with complex solutions
Retargeting Foundation: Users who see display or social ads are more likely to engage later via search or email.
Practical Application for B2B SaaS/CaaS
Formula:
CPM = (Total Campaign Cost ÷ Total Impressions) × 1,000
CPM focuses on maximizing visibility rather than immediate clicks or leads. Companies pay based on ad views, making it ideal for reaching broad audiences in the early stages of the buyer’s journey.
For B2B SaaS and consulting businesses, CPM is valuable because:
Brand Authority: Establishes credibility with niche audiences
Audience Education: Familiarizes prospects with complex solutions
Retargeting Foundation: Users who see display or social ads are more likely to engage later via search or email.
Example
SaaS Example:
A Supply Chain SaaS company runs display ads targeting logistics managers in Europe. The campaign pays 40€ CPM, serving 250,000 impressions (total cost: 10,000€). While direct conversions are low, website traffic from logistics companies increased by 25%, and demo requests rose by 15% over three months.
CaaS Example:
A Customer Success Consulting firm uses LinkedIn Ads to promote a “SaaS Retention Playbook” to CTOs and customer success leaders. With a 30€ CPM, their ad reaches 100,000 impressions (3,000€ spend). Follow-up surveys show that 20% of viewers recall the ad, and 50 webinar sign-ups are attributed to brand visibility.