In This Issue: CPM - Is Your Business Getting the Most Bang for the Buck ???

 

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by Mike Way: April 2, 2007
 
 
CPM in an acronym for Cost Per Thousand. If you don't know the term then you are most likely throwing away your advertising dollars.  Read this article and discover one of the secrets of having your hard earned money work even harder.
   

How does one determine how much to pay for advertising?  For decades, the advertising industry has used a acronym referred to as CPM to determine how much to charge you to advertise. CPM means Cost Per Thousand, the “M” is the Roman numeral for “thousand”.

 

Let’s take a minute to examine CPM. Producers of printed material, i.e. newspaper, magazine or mailers, as well as television and radio stations work very hard to add tens-of-thousands of readers, viewers and listeners to their roles every day. A radio station that enjoys one million listeners can charge more for advertising that a radio station with say, ten thousand listeners.  To make this easy to understand look at it this way; station “A” with 1,000,000 listeners charges $1.00 per thousand, then that station earns  $10,000.00 while station “B” charging the same $1.00 per thousand will earn $10.00 for the same ad.

 

This model works the same for all media except the internet.  And to protect you from wasting your hard earned money, most media submit to the ABC (Audit Bureau of Circulation) to verify what they tell you is true.  Most rate cards from most media will proudly show one or several of the logos below
 

Let’s say that a local free advertising newsprint advertising supplement boast a circulation in your area of 50,000. The salesperson will carefully tell you that it may be actually more. He, or she, will say, we print and distribute 50,000 copies. They will say that studies show that for every copy distributed, four people read it, which is often true for magazine like Time, Newsweek, etc.  But, and it a big but, distribution may be wasting your money. Walk into any post office and look in the trash can near the P.O. Boxes.  You will see them jammed with these advertising supplement paid for by guess-who... you!  Why, because some publishers pay for mailing them to a full region for which you the advertiser, must pay for.  But if they end up in the trash at the post office, what do you think happens to the ones delivered to people’s homes? Often, the same thing.

 

Big magazines like Time and Newsweek get the big bucks because they offer their advertisers “qualified” readers. That means that their readers are paying for the magazine.  No one discards a magazine for which they pay for. As such, the rates of readership are in the high 90 percentile vs. the free newsprint advertising mailer in your mailbox.

 

The Good News:  If you choose the right publication, you can have garner phenomenal results. At fizzlers.com our customers at  tell us that they are using a combination of their ads on fizzlers with the judicious use of ads in publications like PennySaver, Thrifty Nickel, Bay Weekly and old favorites like ValPak offer them the best of all world, all printed on gigantic web presses like the shown to the right.

 

And we can help you.  We have no affiliation with any of the fine companies mentioned but we can show you how to make your ad dollars with them work harder, better and combined with what we at fizzlers have to offer, your business will grow. 

 

Think of it this way, Giant Food advertises on Television, Radio, Print and Internet. To be successful in today’s marketplace, you’ve got to put your business where the customers are.  Fizzlers.com can and will do wonders to make your CPM many times more effective.

 

  

 

These logos, among others, demonstrate that a company asking for your advertising dollars, can prove through sampling and statistical modeling that a company’s outreach is what they say it is.

 

Now this is not the place to explain all the nuances but I can tell you this; most small businesses today are paying for “printership” not “readership” and there is a huge difference.

 

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