CPM, CPC vs. CPO: The Future of Performance Marketing

Learn how performance marketing for CPG brands is evolving with Cost-Per-Order Campaigns that guarantee number of orders sent to retailers.

Consumer Packaged Goods (CPG) brand marketers and their ad agencies face a daily challenge: how to spend ad budgets effectively while exploring new advertising models without losing the value of their existing ad strategies. Performance marketing continues to evolve, offering new opportunities to target audiences more precisely and measure success more effectively. Among the various advertising models available, three stand out. Cost-per-Mille (CPM) and Cost-per-Click (CPC) are well-established industry standards, but a new contender, Cost-per-Order (CPO), is rapidly gaining traction.

In this article, we explore the benefits and limitations of these advertising models and why CPO campaigns, particularly in-recipe campaigns, represent the future of performance marketing for CPG brands.

What Is CPM, CPC, and CPO?

CPM (Cost-per-Mille)

• Definition: The cost of 1,000 ad impressions.
• Industry Standard: A well-established metric for building brand awareness.
• Benefits: Great for top-of-funnel campaigns that focus on visibility and reach.
• Limitations: Lack of visibility into downstream metrics, such as engagement or conversions.

CPC (Cost-per-Click)

• Definition: The cost of each click generated by an ad.
• Benefits: A step closer to measuring engagement than CPM.
• Limitations: Still falls short of tracking the end result—whether clicks result in purchases.

CPO (Cost-per-Order)

• Definition: The cost incurred for each order sent to the retailer associated with the campaign. Directly measures the number of branded products added to a retailer’s cart.
• Benefits: Combines the reach and engagement benefits of CPM and CPC while offering a more advanced metric that aligns closely with the end of the purchase funnel.
• Limitations: Since retailers often withhold final purchase data, this campaign type is still one click away from the ultimate KPI—the actual completed purchase.?

Why Cost-Per-Order Is a Game Changer

CPO shifts the focus of performance marketing toward tangible results at the bottom of the funnel. For example, consider a campaign built around a recipe. The user:

1. Views a recipe containing an ingredient from a branded product.
2. Sees a contextual ad showcasing that branded ingredient.
3. Adds the recipe’s ingredients to their preferred retailer’s online cart, both the branded product alongside the other recipe ingredients.
4. Proceeds to checkout, completing the order.

This flow allows CPG brands to track not just awareness and engagement but a metric that is one click away from the ultimate conversion: a completed purchase.

To further bring visibility into the total sales impact of the CPO campaign, an incrementality study is provided at the end of the campaign, highlighting the lift in both online and offline sales.

CPO campaigns mitigate risk by guaranteeing a set number of orders, providing a more reliable return on investment (ROI) than traditional CPM or CPC campaigns. SideChef has delivered campaigns resulting in as high as 8.72 ROAS.

Key Features of a CPO Campaign

CPO campaigns provide comprehensive insights by incorporating metrics from the top to the bottom of the funnel:

• Top-of-Funnel: Impressions and clicks.
• Bottom-of-Funnel: Orders sent to retailers.
• Comparative Insights: Recipe, demographic, and retailer comparisons.
• Sales Impact: Detailed analysis of online and offline sales lift.

The comparison chart below shows how the three advertisement models compare to each other:

CPO Campaigns Within A Recipe

In-recipe CPO campaigns offer a particularly innovative approach to engaging audiences. These campaigns place branded products directly within the context of recipes, allowing for a seamless integration of advertising with a high-intent audience. Our A/B tests have shown that in-recipe ads are 54% more effective when compared to traditional ads.

SideChef's comparison tests have shown that in-recipe ads are 54% more effective when compared to traditional ads.

How It Works

1. Contextual Ads: The branded product is showcased in visual ads tied to the recipe.
2. Sponsored Recipes: The recipe includes the brand’s product in its ingredient list.
3. Preferred Product: The branded product is automatically selected in the retailer’s cart for checkout.
4. Optional Enhancements: Brand logos, product descriptions, and cover photo placements can reinforce brand messaging.

SideChef has pioneered in-recipe CPO campaigns, leveraging their vast network of recipe platforms, including their own B2C platform, to reach millions of users monthly. This provides an ideal environment to test and scale such campaigns.

4 Core Benefits of In-Recipe CPO Campaigns

1. High-Intent Audience Recipe contexts naturally attract users with immediate purchase intent. This ensures that branded products are seen by users already in a buying mindset.
2. Build Brand Perception In-recipe campaigns allow brands to craft their narrative. For instance, a premium egg brand can associate itself with high-quality recipes, subtly enhancing its brand image while driving purchases.
3. Rich Recipe Insights In addition to demographic data, recipe campaigns provide unique insights into user preferences. Brands can identify which recipes resonate with specific audiences and adjust strategies accordingly.
4. Comprehensive ROI Measurement With metrics spanning awareness to purchase, CPO campaigns offer unmatched clarity on campaign performance, including incrementality studies that analyze online and offline sales impact.

Why In-Recipe Cost-Per-Order Campaigns Are the Future For Brand Marketeers

CPO campaigns represent a natural evolution in performance marketing, offering a holistic approach that bridges the gap between awareness and conversion. By focusing on tangible results—orders sent to retailers—CPO campaigns provide CPG marketers with unparalleled value and accountability.

Platforms like SideChef are leading the charge with in-recipe CPO campaigns, combining the contextual power of recipes with performance-based pricing. The result? A scalable, high-impact advertising model that drives both sales and brand equity.

Curious about what CPO campaigns can benefit your brand? SideChef offers pilot campaigns, allowing you to test the waters and future-proof your advertising strategy.

Visit sidechef.com/business for more info on our services.