The cost of advertising on different platforms varies greatly, with some platforms offering lower CPMs (cost per thousand impressions) compared to others. This variation in cost is due to several factors, including the target audience, ad format, competition, and platform capabilities.
Business Insider compiled a list of average CPMs by platform and you may be wondering why there is such a drastic difference in cost.
Amazon: $1.58
Google Search: $1.25
YouTube: $6.45
Meta: $13.35
Snap: $7.23
TikTok: $7.43
One of the primary reasons why CPMs vary by platform is the target audience. Platforms that cater to a highly specific, niche audience may offer lower CPMs because they have a smaller pool of advertisers competing for space. On the other hand, platforms that have a broader, more general audience may have higher CPMs due to higher demand for advertising space and more competition.
Another factor that affects CPMs is the format of the advertisement. Some platforms may specialize in video ads, while others may specialize in display ads. Advertisers will typically pay more for video ads, as they are more engaging and tend to receive higher engagement rates compared to display ads. Additionally, platforms that offer more advanced targeting capabilities, such as programmatic advertising, may also have higher CPMs because advertisers are able to reach their target audience more effectively.
Competition also plays a significant role in determining the cost of CPMs on different platforms. Platforms that have more advertisers competing for space will naturally have higher CPMs. Conversely, platforms with less competition will offer lower CPMs, as advertisers have less competition for ad space. This is particularly true for niche platforms, where the target audience is smaller and less competition exists.
Finally, the platform's capabilities also play a role in determining the cost of CPMs. Platforms that offer more advanced advertising capabilities, such as programmatic advertising and real-time bidding, will typically have higher CPMs because they offer advertisers more control and flexibility over their campaigns. On the other hand, platforms that have limited capabilities will typically offer lower CPMs, as advertisers have fewer options and less control over their campaigns.
Kommentare