16 Feb CPM – (Client Purposely Misled)
Yes, I know CPM actually means (Cost per 1,000 Impressions) but this is a very important topic for those looking for a marketing agency. Many agencies will use the CPM as a fallback on poorly executed advertising campaigns. It is important to remember that marketing can provide a lot of value for a company but at the end of the day you will always want to increase sales.
When you run a campaign on a social network like Facebook, you have many options to be able to target users. Moreover, you have the ability to be charged based on clicks or impressions. 90% of the time your focus should be to go after clicks! The bottom line is that you are trying to generate more sales and your conversion rates are going to be much higher if you focus on driving users to your website.
There are some exceptions to this. It is hugely important to build brand equity and drive awareness to your company. This can be achieved through campaigns that utilize video or images. In a campaign such as these you would want to try and get as many unique users to see your content. This type of campaign would want to focus on CPM. Remember, users who are unfamiliar with your brand who are not going to see an ad and purchase, the building of awareness is important.
So why do I believe CPM to mean “Client Purposely Misled”? This revolves around an agency’s pitch. I have seen this type of promotion countless times. “We can help you generate thousands of views on your posts!” or “Our clients average 500,000 impressions per day!”. These numbers seem impressive, but they don’t provide you with any information on CTR (Click Through Rates), Conversion Rates, or increase in sales. What was the client’s ROI? It is always important for you to ask the agency/freelancer/consultant about their results in sales. Ask for an example of how they increased sales in your industry.
The Difficult Part:
I know that many clients ask for a Non-Disclosure Agreement and this limits an agency’s ability to provide valuable information to prospective clients. This can be difficult. But, there are two ways around this. 1) References and 2) Blind Case Studies.
When you are looking to hire a marketing agency, it is not unreasonable to ask for references. A lot of the time you will see agency websites provide you with quotes from past clients, but take an extra step to get references. Do it! It is always worthwhile to learn more about what the relationship was like between the client and the agency.
Blind Case Studies:
Don’t let the blind lead the blind. You may not be able to get data from past clients, but some agencies will provide you with blind case studies. This can provide you with all of the information you might need, but keeps the client private. There is some questionability to the legitimacy of these types of case studies, but at least you can gain some insight into what the process was and how much time and value was put into the work.
It’s important to remember that marketing can provide value in multiple ways. It doesn’t always come down to an increase in sales or a ROI. But if you are an established brand looking to increase your sales through advertising, you have to have concern for making the campaigns worthwhile. Taking the time to look into an agency is important. Look at past work, case studies, references and compare that with what you receive from other agencies. The bottom line…don’t be misled!