Are you an advertiser looking to promote your brand through video ads? If yes, then you might have heard of the term CPM. CPM, or cost per mille, is an essential metric that determines the cost of advertising on video platforms. In this blog, we will discuss what video ad CPM is and how it affects your ad campaigns.
Concept of Video Ad CPM?
Video ad CPM is the cost of advertising per one thousand impressions. An impression refers to the number of times your ad is displayed on a user’s screen. Advertisers usually pay for every one thousand impressions their ad receives. Video ad CPM can vary depending on various factors such as ad format, ad placement, and targeting options.
Factors Affecting Video Ad CPM
The following are the significant factors that can affect the CPM of your video ads:
Ad Format: The type of ad format you choose can significantly impact your video ad CPM. For instance, in-stream ads, which play before or during a video, have higher CPM than display ads.
Ad Placement: Ad placement is another crucial factor that can affect your video ad CPM. Ads placed in high-traffic areas or premium placements are likely to have higher CPMs than those placed in less visible areas.
Targeting Options: The targeting options you choose for your video ads can also affect your CPM. Targeting a specific audience or demographic can increase your CPM, as you are reaching a more relevant audience.
Industry and Seasonality: Industry and seasonality can also impact your video ad CPM. For example, during the holiday season, CPM tends to increase due to higher demand for ad inventory.
How to Lower Video Ad CPM
If you’re looking to lower your video ad CPM, here are some tips that can help:
Optimize Ad Formats: Experiment with different ad formats to find the ones that perform well with your target audience. You can test various ad formats, such as in-stream ads, display ads, or sponsored content.
Adjust Ad Placement: Try different ad placements to see which ones perform best with your audience. You can also consider targeting less popular placements to reduce your CPM.
Refine Targeting Options: Refine your targeting options to reach a more specific audience. By targeting a smaller but more relevant audience, you can increase engagement and lower your CPM.
Negotiate with Publishers: You can negotiate with publishers to lower your video ad CPM. This is especially effective if you are running a long-term campaign or if you have a substantial budget.
The Importance of Video Ad CPM
Video ad CPM is crucial because it determines the cost of your ad campaigns. By understanding video ad CPM, you can optimize your ad campaigns for better performance and lower costs. It also helps you understand the value of your ad inventory and how much you can charge for it.
End Note
However, video ad CPM is an essential metric that advertisers need to understand. It helps you determine the cost of advertising on video platforms and optimize your ad campaigns for better performance. By considering factors such as ad format, ad placement, and targeting options, you can lower your CPM and increase the ROI of your ad campaigns.
