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CPM – Does it makes any sense any more?

Guest post by: Dj Das

Article Overview: CPM has been and always will be the most commonly used mechanism for advertisers to generate brand awareness albeit in different forms. But does the CPM model makes sense any more? My take is that it will survive but with significant enhancements. The CPM model would be super charged with sophisticated hyper targeting and contextual analysis technologies and will herald the new age of advertising models

CPM – Does it makes any sense any more?

CPM has been and always will be the most commonly used mechanism for advertisers to generate brand awareness albeit in different forms. Those full-page ads in newspapers, billboards on the freeways, banner ads on any portal, relate to something more fundamental as to how human beings think and make decisions – to buy or not to buy; if to buy, then when to buy and for how much.

But does the CPM model makes sense any more? It’s been tried and trusted for long enough but what is its future in the new internet enabled world?

My take is that CPM model as a model will withstand the test of time but with substantial changes as to how they are delivered and consumed. The technology for delivering ads on a CPM basis will definitely change and make this much more of an effective mechanism for advertisers.

To illustrate my point, consider this example: If you are on a page reading about Kanye West’s latest blockbuster release, you really do not care about (and thus your brain would automatically tune out) the ad for reducing your mortgage payments. On the other hand, if you see an ad for the latest lineup of shoes by him, you would look at it and if the message were sharp enough, you would probably click on it too! Agreed that clicking on an ad and landing on a page does not mean a sale, but atleast it served the purpose of generating awareness about that specific brand in your mind.

Now, the main point that I am making in my example was that the CPM model worked – but only because of its contextual relevancy. Now, in addition to the page relevancy, add a toping of site visitor’s interest relevancy. Now in our example above, if the ads were about the latest lineup of shoes only because the visitor at some point in the past on some other site, had indicated an interest in buying or had actually bought a pair of shoes – then we have a model that really works.

And today in this digital world of the Internet, we can rely on technology to give us this mechanism of providing contextual relevancy – both for the page the visitor is currently reading (viewing) and for the interests that the visitor had expressed in the past.

All in all, models that have worked in the past, super charged with sophisticated hyper targeting and contextual analysis technologies will herald the new age of advertising models – whereby the ads generated will be totally relevant to YOU, the buyer – the center of the ad world!

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Article Tags: advertisements, advertisers, advertising models, brand awareness, contextual ads, contextual advertising, contextual analysis, cpm model, hyper, new age



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