Email cpm rates: what should you really pay for email ads?

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Ona Romaguera asked a question: Email cpm rates: what should you really pay for email ads?
Asked By: Ona Romaguera
Date created: Sun, May 2, 2021 1:56 PM
Date updated: Thu, Sep 22, 2022 2:53 PM

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How Is CPM Calculated?

  • Sending 1 – 10,000 emails may cost $15 ($0.0015 per email)
  • Sending 10,000 – 50,000 emails may cost $12 ($0.0012 per email)
  • Sending 50,000 – 250,000 emails may cost $10 ($0.0010 per email)

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What is a Good Email CPM Rate? The way that email advertising rates are set is by CPM, or cost per thousand subscribers on the list. That means that a $500 campaign, sent to a list of 20,000 subscribers, will cost you $25 CPM. Spend that same $500 on a mailing to 50,000 subscribers, however, and your CPM will drop to $10.

A $15 CPM on a newsletter with a 10% open rate and a $15 CPM on a newsletter with a 40% open rate dramatically changes your cost per view. While two newsletters might look similar in price, you effectively pay 4x more per impression for the lower performance.

As I discussed above, CPM ads pay on per 1000 impression basis. So, they have a fixed CPM rate for each 1000 impression. The CPM rates usually range between $1 to $3 per 1000 impressions. Depending upon the traffic strength of your blog, you may get either good CPM rates [around $1], better CPM rates [around $2] or best CPM rates [$3 or above].

Advertisers will always be working out how many opens, how many clicks, and how many conversions your email inventory can yield them. Start modest in your pricing ($5-10 CPMs). If your results are good enough, you’ll be able to move prices up on your email ads over time.

When your business places an ad online, your success is measured based on CPM, which is the cost per 1,000 website impressions. A typical CPM ranges from $2.80 with Google to more than $34 for a ...

Let’s take an example; if your website receives 20,000 impressions every day and 40,000 page views, it’s mean that your CPM rate is $4, so they will pay you a total of $40. Similarly, some CPM Ad networks offer $1 to $10 on 1000 impressions, depending on the factors and situation. Similarly, if your CPM is $10, then you will be paid in total $100. The important thing that you must keep in mind is that there must be a good flow of traffic towards your website all the time.

According to Wordstream, the average cost of advertisement on Google Adwords is $2.32 on the search platform and $0.58 on the Display Network. The same source places the average cost per action (CPA) on Google’s advertising network at $59.18. On Facebook, on the other hand, the CPA is quite a bit smaller.

Divide $1,500 by 1,000 (remember that 1,000,000 is equal to 1,000 times 1,000 page views) and you get a CPM of $1,5. Similarly, if you visit JohnChow you will find that the 125×125 button add costs $500 monthly, and the blog generates 300,000 page views. Again just do $500 divided by 300 and you get a CPM of $1,66.

The average cost to reach 1,000 people with online advertising Ranges from $3-$10, while the average cost to reach 1,000 people with traditional/offline advertising is $22 and up. Our Measurement: CPM. Measuring the raw efficiency of marketing can happen in a number of ways.

If you’re just starting out with newsletter ads, charging a CPM between $15 to $30 is a good range to aim for. Classified ad space alongside a number of other brands might mean you have to offer a lower CPM between $5 and $15.

What is a Good Email CPM Rate? The way that email advertising rates are set is by CPM, or cost per thousand subscribers on the list. That means that a $500 campaign, sent to a list of 20,000 subscribers, will cost you $25 CPM. Spend that same $500 on a mailing to 50,000 subscribers, however, and your CPM will drop to $10.

As I discussed above, CPM ads pay on per 1000 impression basis. So, they have a fixed CPM rate for each 1000 impression. The CPM rates usually range between $1 to $3 per 1000 impressions. Depending upon the traffic strength of your blog, you may get either good CPM rates [around $1], better CPM rates [around $2] or best CPM rates [$3 or above].

Advertisers will always be working out how many opens, how many clicks, and how many conversions your email inventory can yield them. Start modest in your pricing ($5-10 CPMs). If your results are good enough, you’ll be able to move prices up on your email ads over time.

Let’s take an example; if your website receives 20,000 impressions every day and 40,000 page views, it’s mean that your CPM rate is $4, so they will pay you a total of $40. Similarly, some CPM Ad networks offer $1 to $10 on 1000 impressions, depending on the factors and situation. Similarly, if your CPM is $10, then you will be paid in total $100. The important thing that you must keep in mind is that there must be a good flow of traffic towards your website all the time.

You could build a sponsorship model based on CPM. For example, you might charge $100 a month for a static ad in a section on your site. If the section averages 10,000 page views a month, then $100 is a reasonable rate because it averages a $10 CPM. But if you charge $1,000 a month, the CPM jumps up to $100, which is not reasonable.

Divide $1,500 by 1,000 (remember that 1,000,000 is equal to 1,000 times 1,000 page views) and you get a CPM of $1,5. Similarly, if you visit JohnChow you will find that the 125×125 button add costs $500 monthly, and the blog generates 300,000 page views. Again just do $500 divided by 300 and you get a CPM of $1,66.

Depending on your targeting criteria and competition on LinkedIn, CPC can start anywhere from $2.00 to $5.00 or more, which is quite high compared to other social networks. The industry-wide average CPC is $5.26. For CPM, LinkedIn charges per 1,000 impressions. We’ve recorded an average CPM of $7.85 for LinkedIn Ads.

And whether an advertiser is competing for attention. The more exclusive the ad, the more you can charge. If you’re just starting out with newsletter ads, charging a CPM between $15 to $30 is a good range to aim for. Classified ad space alongside a number of other brands might mean you have to offer a lower CPM between $5 and $15.

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