Cost per Effective Communication vs. Traditional CPM
Why traditional CPM falls short when applied to in-store media.
Cost per 1,000 impressions (CPM) has long been the default metric in advertising. But for in-store environments, it often fails to measure the actual communication between brand and shopper:
CPM is based on estimated footfall or screen views.
It does not account for whether the message was delivered or received.
It treats all media types equally, despite wildly different attention dynamics.
Formula: CPEC = Media Cost ÷ (Verified Impressions* × Exposure Rate × Engagement Score)
Introducing CPEC: Cost per Effective Communication.
CPEC provides a more accurate measurement by adjusting for true exposure and attention. It calculates how much it costs to deliver a message that a shopper actually receives.
Verified Impressions*: Total potential audience (net POS driven data)
Exposure Rate: 100% of audience likely to hear/see the ad.
Engagement Score: Attention level of media type (scale from 0 to 1)
Why CPEC Matters for FMCG Brands:
Reflects real message delivery, not screen counts or estimates.
Standardizes media evaluation across audio, video, and hybrid formats.
Empowers brands to buy media based on impact, not guesswork.
Creates a consistent ROI framework across campaigns and channels.
