Are your clients asking how much it will cost to reach 1,000 consumers using the media you’re selling versus something else? We have some answers based on newly published research from the Outdoor Advertising Association of America and Solomon Partners. The data is based on their review of “publicly traded media company Securities and Exchange Commission filings, news reports, and other sources.” As you talk with clients, make sure they understand the difference between cost and value when advertising.
Differentiate Between Cost and Value When Media Buying
In this study, traditional print newspaper advertising had the most expensive CPM. For your clients to reach 1,000 newspaper readers, they’ll spend $46.82. For primetime broadcast TV, the cost per CPM is $36. Outside of the primetime range, the cost is significantly less, $20. While primetime cable TV costs $19, outside primetime comes in at $12. And interestingly, the CPM for traditional magazines ranges from $9 to $23, with an average of $13.24. Radio has a particularly compelling CPM of $6.75.
We’ve long been told that digital media costs far less than traditional media. Once upon a time, that might have been true. But, these days, OTT advertising will cost your clients about $30 per CPM. If they want to reach 100,000 consumers, they’ll pay $3,000. And for podcasts, the rate is $23.33 per CPM, which sounds expensive when compared to traditional radio.
A static general display ad is priced at about $2.27 while the rate to show that kind of ad to 1,000 people on a mobile device is $2.21. Not surprisingly, the prices rise when video is involved. Advertisers are paying $10.47 and $10.64 per CPM for mobile video and desktop video, respectively.
The Out-of-Home Advertising Association of America (OAAA) contends that some of its formats are the most efficient in terms of cost.
- Out-of-home posters: $3.19 per CPM
- Out-of-home transit shelters: $2.18 per CPM
- Digital place-based media $7.50 per CPM
What to Consider Besides CPM
After seeing these numbers, your clients may ask why the media you’re selling is so much higher than another format. This is your opportunity to help them differentiate between cost and value. Your best strategy in this situation is to discuss the types of media used by their target audiences. It will do them little good to spend heavily on a mobile campaign if their target audience spends most of its time watching TV and responds well to ads shown on TV. Using industry intelligence, such as AudienceSCAN from AdMall, produced by SalesFuel, will give you the specific data you need to show your clients whether OTT or OOH placements will give them the best ROI on their investments.
It pays to spend time perfecting the message in advertising. Your clients should know that audiences don’t appreciate the same elements of an ad campaign. Over 40% of younger consumers, those in the Gen Z and Gen Y age groups, like to be entertained, and they want product information.
For baby boomers, product information is key (57%), and 43% of this group also want information about discounts or special offers.
With digital advertising such as email, it’s easier for your clients to give prospects personalized recommendations, a detail that 21% of Gen Z consumers and 19% of Gen Y consumers appreciate. While there’s been plenty of industry buzz about creating messaging that promotes diversity, inclusion and social and environmental standings, it’s the Gen Z consumers (21%) who care most about these topics.
Quality of Impressions
Your clients should also know that the quality of impressions can vary based on the media format they use and the audience they’re targeting. For example, 53% of Gen Z consumers say they are easily distracted by notifications on their phones. If your brand has rolled out a video ad, a Gen Z consumer may only see a few seconds before they move on to check out the latest text message that has come in.
A good ad campaign strategy takes far more than CPM into account. As you work with your clients to understand their goals and their target audience, make sure they differentiate between cost and value. Help them develop campaigns that will succeed in specific media formats and remind them that too many ads aggravate consumers (53%) along with ads that block the content they want to see (39%).
Photo by Lucas at Pexels
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