In this podcast, I will dive into a very important metric in the Facebook Advertising world – CPM (cost per thousand). The interesting thing is that history has repeated itself throughout every single time in this world. Opportunities have come and gone. Radio came into existence and it was affordable to advertise on it, lots of people and brands made lots of money but then… it got expensive! Many brands flooded the media channel and eventually, it became overpriced.
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Podcast File
An Important Metric in Facebook Advertising – CPM
Podcast Transcription
Hello guys. A lot of amazing, exciting things that are going on. And today I want to cover a subject which is a very crucial term when it comes to marketing in the world of advertising around any particular platforms and I’m going to clarify that because this is a source of a lot of understanding and that’s the term that they call CPM, Cost Per Thousand. CPM stands for Cost Per Mille, meaning for every 1,000 impressions, how much do you have to pay the media? Because this is what the way media works around the world. Like media tries to accumulate big audiences. These medias are anywhere from newspapers, to magazines, to television, radios, and any kind of place where people have attention on it.
So for example right now, today we have media on Youtube. Facebook is media, Instagram. All these guys that you can count with the fingers of your hand, it’s about 7 of them that are really capturing the attention worldwide right now. We have Pinterest, Instagram, Twitter, YouTube, Snapchat, Facebook, Messenger Channels, Whatsapp, etc. So there’s not that many of them. These ones are media platforms. All of them. So, their job from their formation, ever since they were created was to get loads of people in there and get all these people to pay attention and stay there as much as possible. So then, down the line they could sell ads and that’s what it’s all about. So, for example on Facebook you have 220 million active people using it monthly and you have about 150 million people using it daily in the United States only. Around the world we got 2.2 billion people active monthly and about 1.6 billion people active daily. It’s a lot of people. So we have a big bag of people that we can market to and put our messages in front of.
So, this is very exciting because we’ve gone through times in our lives and our ancestors went through times in the advertising world and the marketing world that there was a cost per thousand that was ridiculous and opportunities have come and opportunities have gone. For example, when the radio began its domination which was about the 1920’s, it was actually created on 1899 or something like that, 1900, it was an interesting story that I was reading about the other day. It actually took a good amount of years, maybe 10 or 15 years before it became really mainstream.
So around 1920 it was actually really big. In order to advertise on radio, it was really affordable. It was huge but not enough advertisers were in it promoting their services or their products. So it was still really affordable. Again, it’s that very simple law of supply and demand. Why are diamonds expensive? Because there are not a lot of them. So, for example, in the sense of like scarcity there, right? Now, why is it cheap to advertise on Facebook Ads to put your message on the biggest media platform in the planet right now. Well, because there’s not a lot of advertisers in there, so the competition is not that much so the demand is actually not that high for advertising so you have an opportunity to be able to give some money to Facebook which gives them some room to grow and then they can continue scaling and growing and the opportunity has occurred over and over throughout time in our planet. So the radio was really cheap and then throughout time, more advertisers started realizing that radio had a lot of attention and a lot of people using the platform and people listening to the radio on their houses, on the cars, on the showers, on everywhere and they actually started investing money on radio because it was actually something that produces a lot of return.
And then it started getting more expensive because more brands get in there and put some more dollars on it and now we get more competition – laws of supply and demand. So at some point, radio became more expensive, television comes into play 1940’s and the same phenomenon repeats itself again. It was so affordable. Not many brands were using it. It was still very new. There was skepticism, there are the doubters and people that say that it’s just a fad that it’s going to go away and nobody’s going to use it and then companies take advantage of that, they get rich, they get powerful, they built billion dollar empires and it gets expensive and then the process repeats itself over and over again, right?
Because on 1990 something, barely anybody could afford ads on television and companies could not actually do branding on them because it was too expensive and it was not affordable anymore. And since it was not affordable, then you know, you had to find other ways to be able to distribute your message and you went to newspapers, go to the places that don’t have much attention as before like radios. Or you put billboard signs or whatever you could afford as a company or brand. So throughout time, we’ve been hunting, we’ve been trying to find opportunities to be able to get a message in front of people. It’s about attention. How many people can see your message for as little money as possible? That is what the game is all about at the end.
So, if you can find for example 100,000 people and pay maybe $20 to get to them, then wouldn’t it make sense that you can go faster on that platform than on another platform that you find that you can for 100,000 people now you have to pay $1,000. So we’re talking about the same people, you know? Yes, there are some factors when it comes to the right people like the correct audience, the segmentation, the demographics and all these other stuff. But overall, this is pretty much how it works. You’re trying to find attention at incredible opportunities. It’s underpriced attention. The cheapest possible attention that you can get in the marketplace. So from the research recently I can tell you right now where is the cheapest place that you can get attention and you will be surprised if I tell you that it’s not even Facebook. It’s actually Snapchat, okay? But Snapchat has a really bad product right now for advertising. I mean, it’s something that you can actually learn to use and maybe start working on it but I myself gave up on it. So I’m not even doing it. But Snapchat has, you can get like 1,000 people for like a little bit of a dollar. Imagine that. So, for a single dollar, you can get a thousand people to see your ads. 1,000 human beings can see your ads. Let’s compare that to the top of the chart.
At the other end, for example, if you want to find 1,000 people on the newspaper, you’ll have to pay $32 for every 1,000 people. That’s what we call the CPM, cost per thousand. And then, there’s all kinds of different levels. For example, you are going to find radio like being $25 and then you have like for example television like $22, then it goes on and on and on. So extremely overpriced attention especially looking at the existing marketplace and knowing that people are not listening to the radio as much because they’re maybe listening to Amazon music and Alexa and iTunes and iMusic and all these other Spotify and Pandora, etc.
So, not a lot of people are listening to the radio but still very expensive to advertise on that medium. And then television, we have Netflix and Hulu and all these other dominating platforms including Amazon Prime Video and all these other places that are replacing television, but still, people are paying a lot of money to advertise on television even though nobody is looking at so much on it. Like people are now watching commercials, right? This is what’s going on right now. They are actually pausing on the commercials and maybe glancing for Facebook or they actually just fast forward the whole thing because they are DVR’ing the whole thing. So still despite that, it’s really expensive to advertise on these channels.
Now, we’re going to talk about Facebook which is where I think is the biggest opportunity today. Even though it’s not the cheapest one because we’ve talked about Snapchat, nobody compares to the Facebook Advertising platform because Facebook has targeting that Snapchat doesn’t dream about, not even close. So, it’s like targeting on steroids. Like any advertiser’s dream is in there. Let me give you an example of an exaggerated scenario. You can actually advertise and find 1,000 people. Yesterday I was running an ad in Mexico. Now, the countries where there’s like maybe less, you know, it’s a little bit behind in the United States, those countries, it’s even cheaper. Like for example, Mexico. It’s incredibly cheaper. Latin America is, I’m going to say 3 or 4 or maybe 5 years behind when it comes to the advertising world and the cost of advertising. If you think that there’s an opportunity right now in the United States which there is, the opportunity in other countries is even bigger.
So for example you’re trying to build an Amazon brand or like you’re trying to build an ecommerce shop that goes beyond the borders of the United States, then realize that the opportunities are like outrageous because you can actually put a lot of money behind building your brand in Amazon India, in Japan, in Mexico, in all these other places that are really really really affordable to advertise on it. It’s incredibly cheap. Like yesterday, I reached 50,000 people on an ad in Mexico and I was paying ¢65 for every 1,000 people reached. Now, I wouldn’t even dream of those numbers today in the United States. But in the United States, if you are running some decent ads that provide value and get people’s attention and that is not just sell, sell, sell, sell, you can pay anywhere from $2-4 for every 1,000 people that you put your message in front of. So, imagine that, right?
We’re talking about if you are going to spend $20, you can literally get in front of like so many people, 10,000 people for $20, etc. So like just to give you guys an idea, I have gotten that below $2. I’ve even gotten that below $1 but it has to be like if you come up with some very creative awesome content that is actually very engaging that people love, then you can lower it even more. Because as I have explained on the previous podcast, the way it works on Facebook is that they reward content that is actually engaging, that people like because it’s all about user experience. So if you provide good content, entertaining and people like it, Facebook lowers the cost. So you are going to find out along the way that creating engaging content is a way to go. Things that make people like share and comment and like interact and like be interested in it and think that it’s valuable is the way to go.
I just want to clarify in this podcast the CPM term. I’m actually right now, as a side note in the process of building this awesome step by step course that is going to take anybody from being a beginner Facebook Advertiser to being a Facebook Ninja like myself and being a Facebook genius on the subject of advertising on this incredible platform. Now, I believe that we have a good solid 5 years to build our dreams before these thing becomes a little bit more equally or like fairly priced. So in the next 5 years, you need to dominate and get as much as possible as you can. In the process of building your brand, realize that you need to put as much energy towards building that brand in this modern era, digital era, because it’s an opportunity that we never had before.
Now again, we had radio opportunities. We had television. We had email marketing. We had Google Adwords. We had Youtube. But today, that opportunity is maximized because a platform like Facebook is being used actively for close to 80% of the population in the United States. And, not only that. They have more targeting potential, they have more information about a customer than anybody else has ever had.
So, what is the point here on this whole message? Guys, there’s a massive opportunity waiting for you to grab it. It’s an incredible enormous opportunity. It’s not a small one. It’s not something to like, oh yeah, maybe I can take advantage to it. It’s like if you have ambitions and if you have goals and aspirations, realize that you can reach out and grab them. And if you didn’t, it’s on you and nobody else but you. Because I have done it. I’m not just here grabbing this device and recording a podcast and talking to you guys out of thin air. I am a doer. Every single day I’m accomplishing incredible things with the brands that I’m helping and my own brands. This is something that I have been able to prove to you guys throughout the last several years. And then, in 2017 I generated close to $80 million in sales.
For me, showing you guys how it’s done, developing a course that takes you step by step is the way to go so you guys can actually get the data that you need in order to expand your business because this is the way it is. I believe in helping people more than anything else. I believe in empowering people just like I myself got helped. Because along the way I received a lot of help from important people. I was a kid in a lot of trouble myself. I had a very difficult background and I got helped. And if I wouldn’t have had help, I wouldn’t be where I’m at today – 37 years old, having accomplished a success that I wouldn’t have even dreamed about 5 years ago and I’m pretty much grateful that I am here on this era in which I’m able to grow my business and apply my skills and use my ability, my intelligence to be able to create this impact on the world that my grandparents were not able to.
It’s not that my grandparent did not have that potential. He probably did because he was a really smart man. It’s just that he didn’t have this phenomenon in front of him of the internet world, of us, being able to sell on Amazon, across the nation to everybody around there from our own homes using a computer and advertising directly on a platform that I can go direct to the consumer. They didn’t have that choice. I did. They didn’t have a choice to go and say like, “You know what, I’m actually interested in expanding to the Canadian market and oh yeah! Good. Let’s do it. Let’s send some inventory and let’s go. Let’s just figure out some laws and let’s get the listing going and off we go.” He didn’t have that chance, we do, okay? And that’s something that we take for granted. We do it all the time and we take it for granted. If we think it’s normal but I refuse to accept this as a normal thing because I know that in the future my great grandkids are not going to be able to enjoy the opportunity as big as we’re enjoying it today in this new tsunami called the Internet that is allowing us to build businesses at speeds that were not possible before. I can tell you for sure that what I’ve done in the last couple of years is more than what a lot of businesses have done in decades combined just because of the era of opportunity that we have run across and I’m lucky enough to live in it.
So, I just want to give you guys that data on this podcast. I’m building that course and it’s going to be awesome. If you want to ask me a particular question you can go ahead and send me a message on my personal Messenger on the Facebook Page which is m.me/theninjamarketer. If you’re interested about the course, let me know what areas you want me to cover, ask me any questions on areas of difficulties. I’m discovering so many things every single day and is so excited because the opportunities just keep getting bigger and bigger. I mean, as I saw the panic in the Facebook community the other day about Facebook changing the algorithm, I get excited because it just means more opportunity. People panic, I jump in, we take advantage, and right now I can tell you one thing, I am breaking records every single week when it comes to capturing attention. We are accomplishing more through the Facebook Advertising platform than we ever have accomplished in 5 years using this platform.
So guys, things are only getting better and stronger and more powerful. So again, send me a message, I would like to hear your thoughts. Let me know of any areas of difficulty. And if you’re interested in the course or finding out about it, I will be holding a webinar to talk about this course which is going to be on March 29, 2018. If you’re hearing this at a later date, today is actually February 26. If you’re hearing this at a later date, stay tuned because we will have another one later on. I will be launching this course several times a year because it’s such a need and I want a road map for entrepreneurs that have ecommerce brands or that want to get their services and their brands to the next level. I think it’s going to be my job to help people become successful in this area especially because I’m good as a teacher and I can help people really understand in making a way that is practical. First, make them realize the opportunity and second, get them practical data that they can apply, see results and do a kind of a copy and paste system based on what I’ve done successfully in the last couple of years to blow up several brands that I do talk about them and I actually share with you guys so I don’t hold anything back.
On my seminars you will see that I talk about my brands and I talk about the things that I do so I’m not one of those trying to hold back the names of the brands and the things that I do because my attitude is pretty much like I dare you to come and challenge me and try to bring me down because I think that I’m going to work a little bit harder than you and I’m probably going to beat you because of my dedication on this area.
So anyways guys, I love talking to you. Right now, it’s actually almost 12 o’clock. I’m excited. I had an awesome day. A lot of working on building the structure of the course and recording and it’s going to be like something that you guys have never seen before, I guarantee you this. The course is going to be something that you have never seen before, okay? And it’s going to be like an incredible step by step guide that is going to blow you guys away and it’s going to help you take your brand to the next level.
So again, one more time. I’m going to put the link below in the description m.me/theninjamarketer, it’s going to take you straight to my Messenger and you can send me any questions in there or any thoughts, anything that you like me to cover in the future podcast episodes and thanks for listening. If you have a minute also and you want to write a review, help me spread the word. I will definitely appreciate it. I’m all here to help you guys become successful in this modern era of opportunities. Okay guys, I’ll see you on the next podcast.
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