Using Need State to get most value from Advertising CPM
In the last post, we reviewed CPM. I highly recomend you go back and read that post because it will make this post more meaningful. We also talked about how advertising in places that target audiences that match your target market may make sense even though they will command a higher CPM. Now to take it up a notch.

Advertising to people who need your product at some point is the first step. But to take it into the next level, you need to advertise to people who need your product and where they need it right now! A few examples:
- a movie billboard near a movie theatre
- a poster for golf clubs in a pro shop
- a gas ad on the radio in rush hour
- a wine affiliate promotion through a wedding planner
- a skateboard logo painted in a skate part
Targeting your advertising to a specific audience will increase your meaningful impressions. Placing your advertisements in places where people need your product right now will increase how many people actually purchase based on the advertisement, i.e. conversions. This is why point of purchase (POP) promotion is so critical for mass merchandise, because patons are right their ready to react to the ad and purchase; but I could talk about that all day as a retail fixture designer.
Let’s break down the gas franchise advertising on the radio in rush hours as an example. Sure, having a nice rich advertisement on the TV is nice, and most of the audience will be drivers. But none of them are jumping off the couch hopping into the car and filling up after the TV spot… unless you have some screaming deal going (if you do: firebrandblog@gmail.com!) But if you advertise on the radio in rush hour, you are reaching people who are in their car right now possibly watching their guage swing down to E in traffic. They are much more likely to convert. Even if they do not buy gas based on the ad, the impression will be much more meaningful because they are in that need state right now. They will be engaged with the ad; that is a much more valuable impression.
Another good thing about that example is that the radio CPM will probably be lower than the TV CPM. So you are getting more meaningful impressions, those impressions are more valuable (greater conversion) and you are doing it for a smaller price. Now that is the power of thoughtful advertising.
Question of the Post: Where can you advertise where your patrons need your product or service right there?
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By Colin Finkle. Colin Finkle is an award winning industrial designer who works with large multinational brands everyday designing retail displays for FX Displays in Toronto, Canada. He is the principle designer at Firebrand Creative. He also writes for AMD’s FireUser.com blog.
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