How does CPM compare in podcasts?
I'm used to measuring cost effectiveness by CPM, how does CPM compare in podcasts?
Podcasting can be both effective and efficient when evalutated properly. The best way to measure podcast effectiveness and efficiency is through market research comparing all media in the marketing mix.
First, you must separate measures of effectiveness from efficiency. Cost per thousand or CPM measures efficiency. The divisor in the CPM equation is the key. CPM is cost divided by a number of impressions, commonly a publication's circulation. This number can be misleading since you would need validating market research to quantify how many eyes actually stopped on your ad. With podcasting, a person actually requests the podcast and you are counting only those who actually download.
Message retention is what measures effectiveness. Compared to other media, podcasting scores higher because your audience decides what messages they want to hear and only download those of interest. Therefore, they are predisposed to message recall.
Podcasting can be both effective and efficient when evalutated properly. The best way to measure podcast effectiveness and efficiency is through market research comparing all media in the marketing mix.
First, you must separate measures of effectiveness from efficiency. Cost per thousand or CPM measures efficiency. The divisor in the CPM equation is the key. CPM is cost divided by a number of impressions, commonly a publication's circulation. This number can be misleading since you would need validating market research to quantify how many eyes actually stopped on your ad. With podcasting, a person actually requests the podcast and you are counting only those who actually download.
Message retention is what measures effectiveness. Compared to other media, podcasting scores higher because your audience decides what messages they want to hear and only download those of interest. Therefore, they are predisposed to message recall.
Labels: faq, podcast, podcasting