When you’re marketing your company or product, every dollar counts. It can be difficult to decide how to allocate your budget with the wide variety of options available. Ultimately, marketing is about a lot more than simply getting as many eyeballs on your product as possible, but knowing the reach of a dollar is important.
There are two main ways to measure reach in online advertising: CPM and CPC. CPM (cost per mille) measures the cost of a thousand impressions. CPC (cost per click) measures the cost per click. Both are typically offered as options for paid search, display, and social ads. The chosen pricing model depends on campaign goals and budgets. CPM is often chosen for awareness-based goals, and CPC is better for performance-based goals like traffic or conversions.
Paid search can be measured by CPM, but CPC is much more common. The cost of paid search varies greatly depending on the vertical, keywords, and targeting. For instance, buying an ad targeted toward shopping and classifieds keywords costs an average of $0.38 with Yahoo Bing, whereas buying an ad targeted toward education keywords costs $4.41 with Google AdWords.
The average CPC in the above chart is $1.70. Assuming a 5% click-thru rate, a $1.70 CPC ad would get 117,647 impressions per $10,000 spent.
Social AdvertisingLike paid search, the more targeted your social media advertising, the more expensive it likely becomes.
Content MarketingWithout an industry-wide standard for measuring content marketing costs, it is difficult to compare this type of advertising with others (read more about measuring the ROI of content marketing). However, we can look at a Fractl campaign for help. Fractl recently placed a campaign on BuzzFeed that achieved more than 3.2 million views within several days of publication. This is an example of a very high-performing campaign.
The industry average for a campaign of this scope is $10,000 for end-to-end strategy, production, and promotion. This means content marketing has a CPM of about $3.09.
Marketing Costs Compared
To learn more about these various marketing methods, take a look at our research on the efficacy of outbound versus inbound strategies.