Your CPM is Not the Problem

Every week, someone flags a “spike in CPM” or asks, “Why is our CPC up this week?” — as if that’s the most important insight we could draw.

It’s not.

CPMs and CPCs are outputs, not strategy. And when brands obsess over these micro-metrics, they’re often masking deeper issues — like weak creative, poor audience targeting, or a broken media structure.

Let’s break it down.

Red Flag #1: Cheap CPMs ≠ Good Media

Low CPMs feel good. But if you’re buying cheap impressions in the wrong feed, shown to the wrong person, with the wrong message — who cares?

Buying reach that doesn’t convert is not efficiency. It’s waste.

👉 Better question: Are we reaching high-propensity audiences at the right moment in the funnel — with the right message?

Red Flag #2: CPCs Go Up When You Scale — That’s Normal

When you push spend beyond your most efficient pockets, costs rise. This is a feature, not a bug.

Too many teams react to rising CPCs by pulling back spend or pushing media teams to "fix it." That usually means shrinking reach or turning off tests — which kills long-term growth.

👉 Better question: Is rising CPC a sign of smart scale… or sloppy expansion? (Hint: Look at CAC and ROAS before panicking.)

Red Flag #3: CPMs Can’t Fix a Bad Message

You could have the most dialed-in media plan in the world — but if your creative doesn’t resonate, people won’t click, convert, or care.

CPM is never going to solve a weak value prop.

👉 Better question: Have we tested message-market fit? Are we segmenting creative by audience and funnel stage?

What Smart Brands Obsess Over Instead:

• Incrementality over efficiency: Are you buying net new customers, or just recycling demand?

• Creative performance, segmented: How does performance shift by concept, hook, or offer — not just by ad set?

• Media:message fit: Are you matching the right idea to the right placement? Or trying to force TikTok logic into YouTube pre-roll?

TL;DR

CPM isn’t the villain. But chasing it leads you away from real performance drivers.

Stop asking “Why is our CPM high?”

Start asking:

• Are we reaching the right people?

• Is our creative actually working?

• Are we growing the business — or just making metrics look nice?

Best,
Peter Delle