In Email Marketing, CPM (Cost per Mile) means the cost of sending per thousand Emails that is the cost per thousand impressions. This pricing structure is also known as CPT(Cost per thousand). Email service providers usually use this pricing method to cover several costs like mail server costs, bandwidth costs, database replication expenses, data security expenses, etc.
CPM Calculation in Email Marketing:
What is tiered rates in CPM Email Marketing?
Often Email service providers use tiered rates in calculating CPM. Tiered rates mean they will decrease the CPM rate with the increase in the number of subscribers.
Example of a tiered rate:
Number of Emails sent CPM rate Price per Email
1-5000 $15 $.015
5000-50000 $12 $.012
50000-200000 $10 $.01
What is a good CPM rate for Email Marketing?
According to research, a healthy newsletter’s CPM is between $15 to $30. It can be higher in the case of luxury goods. In rare cases, it can reach $100 when you have very valuable audiences.
Importance of CPM in marketing:
In Marketing calculating CPM is extremely important because you can compare among Email Marketing CPM rate, Social Media CPM rate, and search engine CPM rate and choose the one which is most effective. You will choose the media which will give you more profit with less cost.
Marketers who use CPM email campaigns gain the following advantages:
- Premium and new material are typically only available through CPM campaigns.
2. Email distribution can be related to other campaign aspects such as TV advertisements, search campaigns, and display media buys.
3. It is easier to estimate when incoming calls from email marketing will arrive, call centers can be suitably staffed.
4. Transparent reporting on send volume, open rates, and click-through rates (CTRs) aids in campaign optimization.
5. Because the effects of email marketing can be predicted more accurately, revenue is easier to estimate
How to negotiate the Email CPM rate?
If you regularly purchase from your Email service provider then you can negotiate the CPM rate with your provider. Email CPM rate can be calculated monthly or per campaign basis.
What is a typical newsletter’s CPM?
According to Paved’s figures, a CPM for a sound pamphlet is anywhere between $16 and $32. When a broadcast has a particularly important audience (such as one who buys luxury goods on a regular basis), your CPM can rise to $120 or more.
We can conclude by saying that though using the CPM method for Email Marketing has many advantages, most of the Email service providers still do not use this method as they determine costing based on the number of subscribers.