Amplify Advertising - A Digital-Focused Ad Agency
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Evaluating your digital campaign

Know Where Your Ad Dollars Are Going

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Six Questions to Ask Your Digital Media Provider


To insure that your digital media provider is getting the most for your marketing dollars, here are six questions you should be asking about your digital marketing:

QUESTION ONE: What is the average CPM of my banner display campaign tactics?

NOTES: The average CPM (cost per thousand) can be calculated by taking the total monthly display advertising budget and dividing it by the number of 1000s of impressions you received in your campaign. For example, if you invested $10,000 in banner display advertising and you received 800,000 banner impressions (ad views) - your CPM would be $12.50 (10,000 divided by 800). As a rule of thumb, average CPMs on programmatic display campaigns should be in the low-to-mid single digits.
TIP: Many media companies and agencies only invest half, or less, of your marketing budget directly into purchasing digital media — while pocketing the remainder.

QUESTION TWO: What is the quality of my banner ad inventory you’re bidding to acquire?

NOTES: All ad inventory is not the same. There are other considerations, such as the size of the ad, or its “viewability.” Does the ad appear at the top of the page, or are most of the ads appearing at the bottom of a page where they may never be viewed?
TIP: Receiving a relatively low $4 CPM, isn’t necessarily a good rate. If the agency or media company doesn't use audience targeting; spreads the campaign over too large a geography; or bids at a $1 CPM for less-desirable inventory— you may not be getting the best quality for your budget.

QUESTION THREE: What margin am I being charged to administer my search engine marketing campaign?

NOTES: Media companies and agencies typically place margins on search engine marketing campaigns ranging between 20% to 50%, or more.
TIP: It doesn’t take much more effort to manage a $10K search campaign versus a $30K campaign. The increase in media company fees based on a larger budget is unnecessary.

QUESTION FOUR: What are the average CPMs of my specialty tactics, such as video pre-roll, email marketing, connected TV, etc?

NOTES: Media companies typically charge higher CPMs and higher markups on specialty digital tactics. It’s important to calculate your average CPM by tactic, and compare them to industry average CPMs.
TIP: You should be aware of Industry average CPM ranges for certain tactics and know that many media companies charge three to five times more than the wholesale bid rate.

QUESTION FIVE: Do I have access to all of the metrics of my digital campaign in order to gauge its success?

NOTES: Media companies are typically not transparent regarding campaign metrics, often utilizing custom reporting templates or dashboards to mask poor results.
TIP: Ask for access into the buying platform of your digital media provider. Access allows for a direct view of the media provider's wholesale pricing on digital media and corresponding results.

QUESTION SIX: How can I avoid steep charges from media companies and agencies on my digital media campaigns?

NOTES: Look for digital marketing professionals, such as Amplify Advertising, to place your digital media campaigns for a flat monthly fee, rather than a mark-up on your entire budget. Additionally, request access into monthly wholesale inventory pricing for your campaigns.
TIP: While changing digital media providers may seem daunting at times, Amplify Advertising works to ease this process to make it as smooth as possible.