CPM (Cost Per Thousand Impressions) bidding is a type of digital advertising where advertisers pay a fee for every 1,000 ad impressions served, regardless of whether or not users click on the ad. Here are some pros and cons of using CPM bidding:
Pros:
Increased visibility: CPM bidding can help increase a brand's visibility by showing ads to a large number of users, even if they don't click on the ad.
Better for brand awareness: CPM bidding is a good strategy for building brand awareness as it allows advertisers to reach a wider audience, even if they are not actively searching for related products or services.
Lower cost: CPM bidding can be less expensive than CPC bidding or other types of digital advertising, especially for brands with large budgets.
Greater control: CPM bidding allows advertisers to have greater control over the placement and targeting of their ads, as they can choose the websites and audiences they want to target.
Cons:
Low click-through rates: CPM bidding may not be as effective at driving clicks or conversions as CPC bidding, as users are not actively searching for related products or services.
Ad blindness: With so many ads being displayed on websites, users may become blind to the ads and ignore them, making it difficult for advertisers to reach their target audience.
Limited targeting: CPM bidding may not be as effective at targeting specific audiences as other forms of digital advertising, as it relies on ad placements rather than user behavior.
No guarantee of conversions: CPM bidding does not guarantee conversions or return on investment, as advertisers are paying for impressions rather than clicks or conversions.