We spend a lot of money every day on customer recruitment and marketing.
Sometimes I pinch myself and look at the marketing investment we are making and look at the amount we spend – then I think about mistakes we made over the year (quite a lot!).
Cost per thousand (CPT) is the single best way to evaluate the media investment. How much will it cost me to reach 1,000 consumers – something that we forget about.
So get an accurate number of the audience (readership, viewers, impressions) and then look at how much this costs. Don’t be fooled by online and offline – who cares – I want or reach an audience – how much?
We offer everyone that joins marketing this simple training and test:
Compare the following (real numbers!):
- An exhibition visited by 1,000 people at £500 + 20% VAT
- A TV advert reaching 10,000 people for £2.50 Cost per Thousand.
- £10 CPM + VAT for a magazine with 20,000 readers.
- 30,000 PD inserts at £40 per thousand.
- £1200 for online advertising at £6 CPM.
Calculate which would be the best and show workings.
Which would be the worst?
Answers on a postcard (it costs around 30p for a postcard delivered at volume) so what’s the CPT?