CPM in Marketing: Why Pay or Get Paid for Impressions

While cost-per-lead (CPL) tends to steal the spotlight, cost per mille (CPM) is often overlooked during ad strategy planning. CPM can be a gamble—after all, there’s no assurance that impressions will translate into real sales.

So why are companies still investing in CPM campaigns across platforms like Google Ads, Meta Ads, or The Trade Desk? Isn’t that a risky move?

CPM is a win for affiliates, but where does that leave advertisers?

As it happens, CPM marketing, widely known as the CPM pricing model, can be a smart move in the right scenario: when you know your audience, have strong creative assets, and can accurately measure your campaign’s performance.

Sounds a bit tricky, doesn’t it?

Let’s break down CPM marketing from the ground up—covering when to use it, how it works, and when models like cost-per-lead (CPL) or cost-per-sale (CPS) are the better bet.

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What Is CPM in Digital Advertising?

CPM, or cost per mille, refers to the price an advertiser pays for 1,000 ad impressions. Platforms like Google Ads or affiliate publishers display these ads to a target audience. In email marketing, CPM can also refer to 1,000 emails sent or opened by subscribers.

 General information about the most popular pricing models in marketing, like CPM, CPC, CPA, CPS, CPL, CR, CLV, ROI

How the CPM Marketing Model Works

CPM campaigns function differently depending on the channel. Whether you’re bidding in real-time via platforms like Google Ads or working directly with a publisher, the approach and outcomes can vary significantly.

Option 1. CPM Campaign in Google Ads

To start a CPM campaign in Google Ads, pick an objective that allows CPM bidding. Then select your preferred ad formats, placements, target audiences, and schedule, and set your CPM bid—the amount you’re prepared to pay per 1,000 impressions.

Google Ads then conducts an auction considering CPM bids and ad relevance to decide which ads to show. Winning ads appear across the Google Display Network or YouTube, and the winning advertiser pays their CPM bid. While each ad slot has only one winner, multiple slots on the same page can feature ads from different winners.

CPM vs. vCPM Pricing Models in Google Ads

A key option in Google Ads is the vCPM model, where you only pay when at least 50% of your ad is visible for a minimum of 1 second (for display ads) or 2 seconds (for video ads). Unlike traditional CPM pricing that charges for every served ad—even those barely seen—vCPM focuses on actual viewability.

Overview of Google Ads Types and Their Pricing Models

Google Ads Type Pricing Model
Search Ads Responsive Search Ads (RSAs) CPC, CPA, ROAS
Dynamic Search Ads (DSAs) CPC, CPA, ROAS
Display Ads Single Image Display Ads CPC, CPM, vCPM, CPA
Responsive Display Ads CPC, CPM, vCPM, CPA
Video Ads Skippable In-Stream Ads Cost-Per-View, CPC, CPM, vCPM
Non-Skippable In-Stream Ads CPM, vCPM
In-Feed Video Ads CPV, CPC
Bumper Ads CPM, vCPM
Outstream Ads CPV, vCPM
Masthead Ads CPM, Cost-Per-Day
Pause Ads CPM, vCPM
Shopping Ads Product Shopping Ads CPC, CPA, ROAS
Local Inventory Ads CPC, CPA
Performance Max Ads CPC, CPA, ROAS, Maximise Conversions, Maximise Conversion Value
App Ads App Ads for Downloads CPI (Cost-Per-Install), CPA
App Ads for Engagement CPC, CPA
Discovery Ads CPC, CPA
Local Ads (now transitioning to Performance Max ads) CPC, CPA, Maximise Conversions
Smart Ads CPC, CPA, Maximise Conversions
Local Services Ads Google Guarantee CPL
  Google Screened CPL

Overview of Google Ads Pricing Models

Pricing Model Number of Ad Types Applicable Google Ads Types
CPM (Cost Per Mille) 7 Single Image Display, Responsive Display, Skippable In-Stream, Non-Skippable In-Stream, Bumper, Masthead, Pause Ads
vCPM (Viewable Cost Per Mille) 7 Single Image Display, Responsive Display, Skippable In-Stream, Non-Skippable In-Stream, Bumper, Outstream, Pause Ads
CPA (Cost Per Action) 12 Responsive Search, Dynamic Search, Single Image Display, Responsive Display, Product Shopping, Local Inventory, Performance Max, App Downloads, App Engagement, Discovery, Local, and Smart Ads
CPC (Cost Per Click) 13 Responsive Search, Dynamic Search, Single Image Display, Responsive Display, Skippable In-Stream, In-Feed Video, Product Shopping, Local Inventory, Performance Max, App Engagement, Discovery, Local, and Smart Ads
CPV (Cost Per View) 3 Skippable In-Stream, In-Feed Video, Outstream
CPI (Cost Per Install) 1 App Downloads
CPL (Cost Per Lead) 2 Google Guarantee, Google Screened
ROAS (Return on Ad Spend) 4 Responsive Search, Dynamic Search, Product Shopping, Performance Max
CPD (Cost Per Day) 1 Masthead
Maximise Conversions 3 Performance Max, Local, Smart Ads
Maximise Conversion Value 1 Performance Max

Running CPM campaigns on platforms like Google Ads or Meta Ads means you’re effectively leasing ad space on websites and apps, albeit indirectly. The key benefit of programmatic advertising through Google Ads is the ability to reach any desired audience without manually hunting for publishers across various locations.

You can also collaborate directly with publishers, a strategy that often works well when targeting niche audiences or local markets. For instance, running display ads through micro- and nano-influencers tends to be significantly more budget-friendly.

 

Option 2. CPM Marketing Campaign Through Direct Affiliate Partnerships

Direct CPM marketing tends to be more cost-efficient since it eliminates platform commission fees. For context, Google Ads charges a commission of 32% for AdSense for Content and 49% for AdSense for Search.

Executing a direct CPM marketing campaign involves selecting the appropriate publisher and negotiating details such as ad format, placement, and impression measurement. A key advantage is the ability to handpick specific websites and ad locations.

Regarding cost efficiency, the CPM rate in direct partnerships typically settles between the publisher’s asking price and the advertiser’s offer. Advertisers aim for lower CPMs, while affiliates seek to maximise earnings from ad placements.

Comparing Google Ads and Direct Affiliate Partnerships

  Google Ads Direct Affiliate Partnership
Cost Custom CPM bids Negotiated CPM rates
Commission 32% to 49% None (0%)
Targeting Based on demographics, interests, and placements Dependent on the publisher’s own audience
Tracking Automated via Google’s ad servers Manual tracking using client tools
Scale Access to millions of websites Limited to publishers’ websites
Risk Mitigation Highly precise targeting options Mitigated by careful publisher selection and niche focus

Typical CPM Rates on Various Platforms

Several factors influence the actual CPM rate, including platform type, industry, geographic location, campaign goals, competitive landscape, and more. For instance, Facebook’s CPM can start under a dollar in less competitive areas but rise to tens of dollars in high-demand regions and premium industry sectors.

Statistics on the cost of social media ads, per 1,000 views, on Pinterest, TikTok, YouTube, Instagram, Facebook, LinkedIn, and Twitter

Also check out: The Definitive Guide to Facebook Affiliate Marketing in 2025

Top Five Influencers on CPM Pricing

Marketers aim to reduce CPM costs while reaching audiences with strong intent. Achieving this balance requires a grasp of supply and demand dynamics, seasonal fluctuations, geographic targeting, and other key factors that influence ad pricing.

Supply & Demand Both macro and microeconomic factors shape market demand and supply for ad space. When many advertisers vie for the same placement, competition drives CPM prices up.
Seasonality CPM rates can fluctuate throughout the year. For example, retail advertisers aggressively compete during holidays like Easter, Christmas, Black Friday, or Valentine’s Day, often doubling CPM rates. Despite higher costs, these periods offer greater audience reach and potential sales.
Target Audience Industry and targeting precision heavily impact CPM. Narrowing targeting by location, demographics, or behaviours shrinks the eligible inventory and increases CPM. For example, targeting broad groups like “all professionals” on LinkedIn costs less than targeting highly specific groups like “US-based C-level tech executives” due to competition intensity.
Campaign Goals CPMs tend to be lower for awareness-focused campaigns and higher for bottom-funnel conversion goals. Top-of-funnel objectives prioritise broad reach and brand awareness with looser targeting, while bottom-funnel targets require granular demographics, driving up CPM.
Ad Format Video and dynamic ads command higher CPMs as they attract more engagement compared to static ads, often resulting in better brand awareness and sales impact.

Improving your ad creative quality, precise targeting, and overall relevance can boost ad display frequency without the need to increase your bid.

Is CPM a Wise Choice for Marketers, or Does It Carry Too Much Risk?

Having covered the fundamentals of CPM, a key question arises: Is CPM riskier than other models like CPC, CPL, or CPA? If so, are there scenarios where paying for impressions makes more sense than paying for clicks, leads, or specific actions such as app installs or downloads?

In the realm of affiliate marketing, CPM represents the highest risk for advertisers but is generally the safest bet for affiliates and affiliate networks.

The reality is that publishers often don’t prioritise whether ad impressions lead to clicks, leads, or sales since they earn revenue regardless. Advertisers, on the other hand, pay for every impression, whether it is seen or ignored by users. Although the vCPM (viewable CPM) model helps mitigate some risk by charging only for impressions that meet visibility standards, it still offers no absolute guarantees.

Book a demo to learn how Phonexa can help you track impressions, drive leads, and elevate your lead acquisition strategy.

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Drawbacks of CPM Pricing

No Guaranteed Engagement An ad might be displayed thousands of times without generating any leads, calls, or sales. While you can track which CPM campaigns lead to clicks or conversions, you still pay based on impressions, not on actual leads or sales, unlike pay-per-lead (PPL) or pay-per-sale (PPS) models. Additionally, it’s difficult to measure the true ROI of ads that have not directly driven engagement, even if they influenced purchase decisions later on.
Need for Accurate Targeting When paying for views, targeting the right audience is crucial, making precise targeting essential for CPM campaigns. However, the more detailed your targeting, the higher the CPM cost. Conversely, PPL and PPS campaigns often rely on pre-qualified leads or calls, reducing the need for upfront targeting.
Low Publisher Incentive Because publishers earn revenue regardless of performance metrics such as click-through rates, lead quality, or sales, they may lack motivation to optimise ad placement, design, or collaboration with advertisers.
Poor Fit for High-Intent, Low-Volume Markets Since CPM marketing focuses on top-of-funnel impressions, it generally yields fewer clicks and conversions. This pricing model is less effective for niches with high intent but low volume, as well as for targeting bottom-of-funnel (BoFu) customers.
Fraud Vulnerability Fake impressions can be difficult to combat beyond halting campaigns and changing publishers. In contrast, PPC and PPS models pay for measurable results—either per lead or per sale—significantly reducing risk, with PPS eliminating it almost entirely.
High Budget Requirement CPM demands extensive testing and a substantial budget to gather enough impressions for reliable data. In contrast, PPL and, especially, PPS models scale costs based on actual results, creating a mutually beneficial scenario for advertisers and affiliates.
Limited Effectiveness for Short-Term Campaigns While a strong CPM campaign with engaging creatives can build brand awareness and support long-term growth, it’s generally ineffective for short-term promotions, such as seasonal sales, where immediate consumer action is crucial.

Strategies to Lower Your CPM Costs

Identify Your Target Audience Leading CPM platforms enable targeting based on demographics, past purchases, interests, and many other factors, allowing you to show ads to the most relevant users while effectively managing your budget.
Balance Ad Frequency While refining your audience is essential, it’s equally important to find the optimal frequency, showing ads enough to engage but not so often as to annoy viewers.
Track Engagement Metrics Platforms like Meta Ads, Google Ads, and TikTok provide detailed analytics on interactions, including clicks, video views, likes, shares, and comments. Use these insights to invest more in high-performing campaigns and cut underperforming ones.
Use A/B Testing A/B testing helps identify which ad elements, such as creatives, subject lines, images, CTAs, and headlines, resonate best with your audience. For example, you can run two different subject lines simultaneously to see which yields better results.

How Phonexa Can Help Make Your CPM Campaigns More Profitable

The great news is that many CPM risks—particularly those related to limited data—can be reduced or even eliminated using Phonexa’s performance and affiliate marketing software suite. This technology reveals detailed insights about your leads, including demographics, psychographics, purchase history, the ads that generated them, and other key customer journey information.

Here’s how LMS Sync can connect your CPM campaigns to real results:

  1. Add Phonexa-specific tracking IDs to your ad URLs when launching CPM campaigns on platforms like Google Ads, Meta Ads, or through affiliates.
  2. Build a dedicated landing page, embed Phonexa’s JavaScript tracking script, and link your ads to this page.
  3. Use the LMS Sync dashboard to monitor which publisher impressions result in lead conversions.

Though LMS Sync’s main function is to capture comprehensive web lead data, it also highlights which publishers’ impressions actually convert into leads, helping you identify those generating lots of impressions but few or no leads.

 

Beyond LMS Sync, HitMetrix helps monitor post-impression user engagement on your landing pages—tracking scrolls, clicks, taps, and detecting friction points, such as click errors, bounces, rapid browsing, or mouse exits. The suite also includes session replay tools to visualise user journeys for deeper analysis and optimisation.

 

Lastly, leverage Phonexa’s predictive modelling software to forecast your campaigns’ future performance. Using AI-powered algorithms, it analyses past campaign data to deliver reliable, data-driven predictions about how different campaign configurations will likely perform.

Before tackling underperforming elements in your CPM campaigns, exploring new audiences, or entering untapped markets, you can safely simulate your strategies in a risk-free environment.

Predictive modelling allows you to focus your resources on campaigns and settings that work, rather than wasting time on ineffective ones. You’ll gain clear insights on the optimal timing and placement of your ads—and if things aren’t perfect yet, you can keep adjusting and testing until you achieve maximum impact.

 

Take a product tour to discover how Phonexa’s eight integrated performance marketing solutions work together for CPM and lead generation success.

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Understanding CPM in Email Marketing

CPM pricing extends beyond ad campaigns into email marketing, where it represents the cost of sending 1,000 emails, often based on the number of emails opened rather than the total number sent. The core concept remains the same: CPM in email marketing emphasises brand awareness, with advertisers paying publishers or ad networks to feature their promotional content within newsletters.

Occasionally, CPM refers to the amount that advertisers or marketers pay email service providers (ESPs), such as Mailchimp, Constant Contact, or SendGrid, for sending emails. However, this is a delivery or operational cost, not the expense of advertising itself.

Ways Phonexa Helps Reduce Your Email Marketing CPM

By leveraging LMS Sync or Call Logic within Phonexa, you gain deep insights into your lead generation efforts, including which ads generate leads and how these leads interact with your website and calls.

What about nurturing your leads through remarketing with E-Delivery?

Since many leads don’t convert immediately, having a solid follow-up approach is essential. Integrating E-Delivery into Phonexa’s platform enables you to engage and nurture unconverted leads with targeted emails or SMS messages sent precisely when they’re most effective.

 

Elevate Your Performance & Affiliate Marketing

Whether you use CPM pricing or prefer lower-risk models like PPL or PPS, Phonexa’s all-in-one performance marketing software suite—covering email, social media, referral, affiliate, call, SMS, and more—offers powerful tools to boost your marketing efforts.

Phonexa offers a range of powerful features, including:

  • Comprehensive insights into clicks, web leads, and phone call tracking
  • Real-time campaign reporting and analytics
  • A centralised dashboard consolidating key data from all your campaigns
“The consumer journey could start with a publisher running an offer on email and come all the way through to a call, with the same customer changing channels several times before they end up at the end destination. Around 45% of consumers don’t buy the first time, so how are you making sure that the attribution and remuneration you’re delivering through your marketing channels are feeding back to the right place? At Phonexa, we’re fairly agnostic – we partner with third-party services and platforms to help our clients work however they like. We’ve seen the best results when clients are using end-to-end tracking, and we’ve helped bring as much of that in-house as possible.” – David Pickard, CEO at Phonexa

 

Get Phonexa’s all-in-one performance marketing software suite at a single price (online price calculator):

LMS Sync Software for lead tracking and distribution
Call Logic Call tracking and distribution platform
E-Delivery Email and SMS marketing software
Cloud PBX Cloud-based phone system
Lynx Click tracking solution
Opt-Intel Suppression list management tool
HitMetrix User behaviour analytics and recording software
Books360 Automated accounting software

Build your plan today, or take a product tour to discover how Phonexa can enhance your performance marketing efforts.

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Frequently Asked Questions

What is the meaning of CPM in marketing?

CPM, short for cost per mille, indicates the cost of one thousand ad impressions (views) or occasionally the cost of sending one thousand emails that feature an advertiser’s promotional content. The CPM marketing approach emphasises building brand awareness rather than driving immediate leads or sales, aiming at the uppermost stage of the marketing funnel.

How do you calculate CPM?

CPM = (Total Cost of Ad Campaign/Number of Impressions) * 1,000

Typically, publishers or ad networks present their CPM rates upfront. For instance, if the CPM rate is £50, you pay £50 for every 1,000 ad impressions. You can reduce this rate by refining your audience targeting or negotiating terms with the publisher.

What qualifies as a good CPM?

The definition of a good CPM varies based on the ad placement and target audience. CPM rates typically range from £0.50 to about £3 for general audiences, while premium placements may cost over £15. In email marketing, CPM can climb to £50 or higher.

Strategic Benefits of Personalised Email Marketing

At their core, marketing emails have transformed into personalised, dynamic tools that drive engagement and even direct conversions. Generic messages no longer cut it—you need compelling, visually engaging content tailored to your audience’s needs and position in the sales funnel.

Continue reading to find out how personalised email marketing could enhance your business strategy.

Why Personalised Email Marketing Is a Game Changer

Did you know that personalised email marketing delivers an average return of $36 for every dollar spent? Moreover, 89% of marketers cite email as their top lead generation tool, and 79% rank it among their top three marketing channels. Nearly 60% of consumers are influenced by personalisation when making purchase decisions.

Below are the top strategic advantages of leveraging email personalisation:

Increase brand awareness Utilise email personalisation to share subscriber-focused updates and news, reinforcing your brand identity and maintaining visibility.
Generate website traffic Share snippets of recent articles and include compelling calls to action in emails to direct readers to your blog and sales pages, increasing website traffic.
Personalise communication Segment your audience and tailor content to individual preferences, fostering engagement and loyalty by making customers feel valued.
Collect business data Leverage email personalisation to gather customer insights through analytics and feedback forms, informing business strategies and enhancing offerings.
Boost sales Showcase products and services, utilise promotions, and employ upselling strategies to increase sales and revenue through personalised email marketing.
Maintain engagement Keep customers intrigued with varied email content, ensuring consistent engagement to stay top of mind.
Amplify marketing efforts Integrate email with other marketing channels to amplify efforts, directing traffic to social media, blogs, and events for increased engagement and interaction.

Take a product tour and discover how Phonexa empowers personalised email marketing to reach its fullest potential.

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Understanding Email Personalisation

“Personalisation – it is not about first/last name. It’s about relevant content.” Dan Jak

Using information such as demographics, interaction history, funnel position, and personal preferences, email personalisation in email marketing aims to satisfy subscriber expectations. This allows you to craft messages tailored to each recipient, rather than sending generic mass emails.

Graphic representation of the appeal of personalisation

Did you know personalisation can cut lead acquisition costs by up to 50%, boost marketing efficiency by 10–30%, and increase revenue by 5–15%? You achieve this by addressing recipients by name, customising subject lines and content to their interests, and sending at optimal times.

Graphic representation of types of data for personalising emails

Explore these key benefits of email personalisation:

Boosted Open Rates Subject lines customised with recipient names, titles, or other relevant details stand out in crowded inboxes, making emails up to 50% more likely to be opened.
Greater Engagement Messages tailored to individual preferences encourage more interaction, including higher chances of direct purchases.
Insightful Data Personalised emails generate valuable marketing data that can shape future strategies and deepen your understanding of your audience.
Higher Conversion Rates Subscribers respond more actively to offers that are specifically customised for them, driving more conversions.
Enhanced ROI Personalisation requires minimal investment yet delivers strong returns, making it a cost-effective strategy.

When email content is personalised, consumers are ten times more likely to become high-value customers who make 15 or more purchases yearly. Eighty per cent of consumers also like brands that customise their experience.

Business buyers share their views on personalised email marketing:

Graphic representation of the percentage of buyers who require personalisation and why

Best Practices for Personalised Email Marketing

“From” Name Using a real person or business name in the “From” field builds trust and makes emails feel more personal and credible.
Subject Line Including the subscriber’s name in the subject line creates a personal touch that boosts open rates.
Email Content Customising email content based on subscriber data shows attentiveness. For example, pet food brand Sundays personalises messages according to the pet the subscriber owns.
Imagery Personalised images resonate more with recipients. Airbnb uses recent bookings to tailor header images, improving engagement.
Dynamic Content Real-time elements like countdown timers or stock alerts motivate action. For instance, Ask and Embla customise countdown clocks based on each subscriber’s timezone to provide accurate urgency cues.

Beyond content personalisation, outcomes can be improved by sending trigger emails depending on user behaviours, such as VIP customer-specific loyalty offers or cart abandonment notifications.

Personalised Subject Lines

Subject lines are the first chance to catch your recipient’s eye. Make them personal by including the recipient’s name, special offers, or clear calls to action to increase relevance and appeal. For instance, “Get Your Exclusive Deal Now” feels more engaging than a generic “Click Here”.

A screenshot of a personalised subject line and email in Duolingo's reactivation email campaign

Sender’s Name

A screenshot showing the sender's name as a more personal touch when doing email marketing and implementing the best personalisation practices

Emails sent from a real person, such as “Anna@company.com”, appear more personal and increase the likelihood of recipient engagement.

Recommendations

Leverage data from multiple marketing channels to build detailed customer profiles and customise your emails and offers accordingly. For example, if a customer purchases solar panels, suggest complementary products like portable chargers to enrich their experience.

Graphic representation of using personalisation in email marketing

Behavioural Triggers

Trigger personalised emails based on typical user actions such as account creation, purchases, or cart abandonment. These timely messages strengthen your relationship with customers.

Additionally, celebrate milestones like birthdays, anniversaries, or your company’s anniversary, and schedule emails to arrive at optimal times by using analytics for best results.

Dynamic & Localised Content

Add real-time elements, such as countdown timers for special offers or live tracking for shipments, to your emails. Customise your messages to reflect your audience’s cultural and regional context by including local events, using local currencies, and adapting the tone accordingly.

5 Excellent Examples of Personalised Email Campaigns

1. Product Recommendations

This example showcases a typical product recommendation email tailored from the customer’s browsing and cart abandonment activity, incentivising with free shipping to prompt purchase consideration.

A screenshot showing Brooklinen personal email recommendations

Source: Brooklinen

2. Personalised Welcome Emails

Welcome emails set the tone for your relationship. Use the subscriber’s first name, send emails promptly after sign-up, and include custom fields or dynamic content to create a warm, tailored greeting.

A screenshot showing Wix's personalised welcome email example

Source: Wix

3. Personalised Content

Boost engagement and blog traffic by sending personalised content recommendations based on your audience’s interests and behaviour. Automate newsletters to deliver relevant material consistently.

For example, PayPal highlights a special offer and a ‘Become a Pro’ option, prompting users to explore tailored financial products.

A screenshot showing PayPal's personalised content email examples

Source: PayPal

4. Birthdays and Anniversaries

Sending personalised emails on birthdays or anniversaries helps deepen customer loyalty by making recipients feel appreciated. Enhance these messages with tailored offers reflecting their preferences or past purchases.

Take a look at this email personalisation example from BodyMindLife:

A screenshot showing BodyMindLife's anniversary email

Source: BodyMindLife

6. Reactivation Emails

Reactivation emails focus on reconnecting with inactive subscribers who might have lost touch with your brand. Strategically timing these emails can revive past customers and help maintain a healthy email list.

Here’s an example of a reactivation email:

A graphic representation of reactivation email as an example of email personalisation in the reactivation campaign

This reactivation email successfully revives customer interest by including a personal note that adds warmth and reassurance. Thoughtful CTAs and visually appealing elements further capture attention, encouraging engagement with the brand’s products.

Test and Optimise Your Email Personalisation with Phonexa

For businesses that depend on email marketing, ensuring your campaigns work seamlessly alongside other marketing channels is essential. Phonexa’s all-in-one performance marketing software delivers an integrated ecosystem combining performance and affiliate marketing for full-spectrum coverage.

Our proprietary platform, E-Delivery, guarantees 100% email deliverability, precise subscription segmentation, A/B testing capabilities, advanced automation features, and seamless integrations with seven other Phonexa solutions, as well as leading CRM and lead management tools.

Using E-Delivery ensures your emails reach the right audience at the perfect moment, while providing valuable insights into subscriber engagement and interactions across other Phonexa tools. This leads to increased clicks, conversions, and sales.

Build your plan today, or book a free demo to discover how E-Delivery can enhance your email marketing efforts.

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While E-Delivery is a powerful tool for email marketing, maximising your results requires a unified strategy across all traffic channels. You need a complete ecosystem managing web, call, and email leads — exactly what Phonexa delivers.

Here’s an example to illustrate what I mean:

 

Get Phonexa’s all-in-one performance marketing software suite at a single price:

LMS Sync Lead management software
Call Logic Call tracking and distribution platform
E-Delivery Emails and SMS marketing platform
Cloud PBX Cloud-based phone system
Lynx Click tracking software
Opt-Intel Suppression list management tool
HitMetrix User behaviour tracking and analytics solution
Books360 Automated accounting software

Build your plan today, or book a demo to unlock the full power of Phonexa’s all-in-one platform.

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Frequently Asked Questions

What is email personalisation?

Personalised emails customise content for each recipient based on their preferences, past behaviours, and interactions. This can involve addressing recipients by name, suggesting products they may be interested in, and delivering content that aligns with their interests.

How can I make my emails more personalised?

Make your emails more personalised by using the recipient’s name, referencing their previous purchases or interactions, and customising content based on what they’re looking for. You can also add dynamic content blocks that change depending on user data and behaviour.

What’s the difference between email segmentation and email personalisation?

Email segmentation involves grouping your email subscribers based on factors like demographics or purchase history, whereas email personalisation focuses on crafting content that deeply resonates with each individual within those segments.

Your Guide to SMS Affiliate Marketing in the UK

As an affiliate marketer operating in the UK, you’re likely looking to tap into diverse strategies to bring in more prospects and maximise their value effectively. If that sounds like you, SMS affiliate marketing might be an overlooked gem that could elevate your performance, particularly if you’re involved in pay-per-call campaigns targeting local UK customers.

While SMS messages may not necessarily be the first thing that comes to mind as an affiliate marketing strategy, they can help you reach audiences in a more elaborate way. Don’t downplay its potential, though. SMS marketing has incredibly high engagement. Industry norms usually refer to more than 90% open rates, surpassing other online mediums, including email.

With a well-planned SMS affiliate marketing strategy, you can:

  • Establish personalized, direct communication channels with the audience
  • Reach subscribers when they will be most interested in offers or information
  • Grow your affiliate revenue while discovering more about the behavior and preferences of your customer base

Adding SMS marketing to your affiliate marketing strategy can be relatively simple, potentially creating significant new revenue streams and ensuring a smooth omnichannel experience for your audience.

Read on to discover the fundamentals of SMS affiliate marketing, such as integrating it most effectively with your other affiliate campaigns and remaining completely compliant in the UK.

Expand your multi-channel approach: Download your free email deliverability guide to help synergize email and SMS marketing campaigns.

How SMS Affiliate Marketing Works: Key Considerations

SMS affiliate marketing is much like other forms of affiliate marketing, except that it involves mobile network operators and SMS gateway or service providers, both of which affect the success of your SMS affiliate marketing campaigns.

Key Roles in SMS Affiliate Marketing:

Affiliates Promote products/services by placing individual affiliate links in marketing SMS messages, allowing them to earn affiliate commissions on sales, leads, or other agreed-upon actions.
Advertisers (Merchants) Offer specific products/services for promotion, run affiliate programs, and pay commissions.
Affiliate Networks Act as intermediaries, providing a platform for matching affiliates and advertisers. Many bigger networks (e.g., Awin, Rakuten Advertising) have good coverage in the UK and help with tracking and payment processing. [Learn more about Awin UK]
SMS Gateways/Service Providers Provide the technical platform, interfaces, and software to send individual or bulk SMS messages securely. Must operate in accordance with data protection legislation.
Mobile Network Operators (such as EE, Vodafone, O2, Three) Send the SMS messages to the recipients’ phones. Their network performance and policies may influence deliverability.
Regulators (Information Commissioner’s Office – ICO) Applies UK data protection law (GDPR) and electronic marketing law (PECR). Non-compliance can lead to hefty fines. [Go to the ICO website]

Choosing a reliable SMS service provider and knowing mobile network dynamics are important to deliver your messages on time. Poor deliverability wastes money and potential. For more on delivering messages into the inbox, examine overall best practices for SMS deliverability, with UK regulation always considered.

 

Essentially, SMS affiliate marketing is like the basic mechanism of performance-based promotion. Sales or traffic are brought by affiliates using SMS, and they receive commissions. However, its functioning and, more significantly, its regulatory framework in the UK are vastly different from content, email, SEO, or social media affiliate marketing.

SMS Affiliate Marketing vs Other Channels:

  SMS Affiliate Marketing Content Affiliate Marketing Email Affiliate Marketing Social Media Affiliate Marketing
Communication Medium Brief, direct SMS (160 characters typical) Blog posts, articles, videos, images Emails (longer ones allowed) Social media posts (many formats)
Engagement Extremely High (typically instant) Moderate to High (dependent on quality) High (list management dependent) High (dependent on platform)
ROI Potential Extremely high short-term ROI potential due to immediacy Potential for high long-term ROI (SEO, evergreen) Potential for high long-term ROI (nurturing) Potential for highly short/long-term ROI (viral potential, community)
Key UK Compliance GDPR & PECR (Strict Opt-In Consent Necessary), ICO Oversight ASA guidance, GDPR (data gathering) GDPR & PECR (Strict Opt-In Consent Necessary), ICO Oversight Platform terms, ASA guidance, and GDPR

Here are examples from popular niches:

Finance Maximise your savings interest with OurBank’s top-rate ISA. Earn up to 4.5% AER. Apply easily here: [affiliate link]. Opt out by sending STOP.
Insurance Save on car insurance with cheap insurance from CoverUK. Customised quotes in minutes. Your free quote: [affiliate link]. Stop opting out.
Home Services Require a reliable London plumber? Save 10% on your initial call-out with HomeFixExperts. Book now: [affiliate link]. Stop opting out.
Broadband Tired of slow broadband? Try FibreFast Broadband & get half-price for your first 3 months! Check availability: [affiliate link]. Text STOP to unsubscribe.

One essential, non-dismissible element that unites all these examples is the opt-out. This is required under PECR in the UK and regulated by the ICO. Maintaining clean lists and letting customers unsubscribe is critical to ensure compliance and keep your sender reputation.

Effective SMS marketing, though, is so much more than compliance.

Let’s explore how to drive targeted SMS traffic to your affiliate products in this market.

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Crafting Your SMS Marketing Strategy: 7 Key Steps

Regardless of whether Peer-to-Peer (P2P) or Application-to-Person (A2P) SMS messaging is used, inserting the inbox keys into the keyboard is not enough; there should be conversions and clicks to target. This means a unified SMS marketing plan should exist despite the available affiliate programs. The regulatory legislation and customer expectations require an individualized approach.

There are seven steps to achieving a successful and compliant SMS marketing campaign:

Step 1. Find Out Your Target Audience

If you already have active online affiliate channels – a website, blog, or social media presence – you can identify your target buyers (especially so if you use an affiliate tracking software). Given that you already know a lot about your target audience and prospective customers, you only need to plan your messaging carefully and ensure the messages resonate with your audience. 

SMS messaging has several key differences:

  • Limited character count: SMS messages are subject to a character limit (typically 160 characters with GSM-7 encoding). Your call to action and main message must be compelling within this constraint, unless you use multi-part messages explicitly (at an increased cost).
  • Instant response: SMS elicits an immediate response. Recipients will respond immediately or not respond. Anticipate fast response or create campaigns (like flash sales) that capitalize on instant response.
  • Compliance: UK SMS marketing is firmly controlled by GDPR and PECR, under ICO oversight. Opt-in, clear positive consent is needed *before* sending out marketing messages. [See ICO Electronic Marketing Guidance]

For instance, time-sensitive customers seeking flash sales or time-limited offers are an ideal target audience for SMS. Conversely, complex B2B promotions may not be suitable for this channel, but reminders for appointments or event reminders might be beneficial. Effective distinctions can be made based on strong data analysis, aided by the appropriate affiliate marketing software.

Step 2. Define Your Unique Selling Proposition (USP)

Identifying your target receivers’ needs enables you to create an excellent USP specifically for the SMS channel, or adapt your own USP into this format. Clarity of expression is important here – you’ve generally only got 160 characters to convey value and stimulate action. 

Here are some marketing SMS examples:

  • Finance: Hi George, Get 5% cashback on grocery shopping with the Premier Rewards credit card. Apply by [Date] & claim £50 bonus! [affiliate link]. Reply STOP to opt out.
  • Insurance: Hi Michael, Secure your family’s future. Receive tailored life insurance quotes from SecureLife, used by 100k+ Brits: [affiliate link]. Reply STOP to opt out.

You will likely be unable to fit all benefits in a single SMS. Emphasize the most effective benefits that position your offer differently in the market. Leverage creative materials or suggested copy from your advertisers or affiliate networks because they typically know what converts for their specific offers.

Step 3. Choose the Right SMS Affiliate Program

When incorporating SMS into your strategy, ask yourself if your current affiliate offers or programs are suitable for SMS promotion in this market. If not, or if you want unique SMS offers, seek out programs designed to fulfill these needs, being extremely selective on suitability.

Key features for an SMS affiliate program:

    • Relevant creatives: Look for platforms that provide SMS templates or examples that have been proven effective with local populations. This is a sign that advertisers understand the channel and the audience.
    • Strong tracking & reporting: SMS tracking is different from web or email tracking. Ensure that the program utilizes robust technology capable of tracking SMS clicks and conversions precisely, ideally as an integration within Phonexa or another platform.
  • Explicit Compliance Focus (UK Essential): Critically examine the program terms under traffic sources, allowed SMS practices, and niche restrictions. Verify their compliance with UK legislation (GDPR & PECR). Avoid programs with ambiguous or non-compliant terms. [Refer to PECR Legislation]

Other than these facts, verify the program offers competitive commissions, easy payment methods (e.g., GBP payouts), and a reasonable cookie duration to capture delayed conversions.

Step 4. Develop Compliant SMS Sequences

With your USP and aware of your chosen affiliate program’s limitations, create a series of nurturing SMS messages to guide subscribers towards conversion. Occasionally, one SMS may not be enough; timely sequences are the essence of sustainable lead generation and relationship development, always with respect to consent and frequency restrictions.

Here’s an example of an SMS sequence for car insurance:

SMS 1 – Day 1 – Initial Offer Hello John, Insure your vehicle with DriveSure insurance & save up to £150. Get your free quote within 2 mins: [affiliate link]. Reply STOP to unsubscribe.
SMS 2 – Day 5 – Friendly Reminder Hello John, Still thinking about car insurance? Discover how much you can save with DriveSure: [affiliate link]. The quote is valid for 30 days. Reply STOP to unsubscribe.
SMS 3 – Day 10 – Social Proof/Benefit Highlight Hello John, 9/10 customers recommend DriveSure for great value & service. See why & get your quote: [affiliate link]. Reply STOP to opt out.
SMS 4 – Day 14 – Urgency/Limited Offer (Use Sparingly) Hi John, Limited time only! Get a free £20 gift card when you buy DriveSure car insurance using this link by [Date]: [affiliate link]. Reply STOP to unsubscribe.
SMS 5 – Day 20 – Value Add/Content Hi John, Tip: Check your tyre pressure monthly to save fuel! Need insurance? Quote here: [affiliate link]. Reply STOP to unsubscribe.

Note: Frequency and content should be tested and adjusted based on response from the audience and campaign goals, always for the benefit of user experience and compliance.

Step 5. Optimise SMS Campaigns for Maximum Engagement

Since SMS advertising is expensive (growth is obvious, per global trends), there is competition for customers’ attention via text. To win, optimize for engagement using best practices, always in line with compliance:

Ensure High Deliverability Choose a reliable mobile network and a compliant SMS software provider to ensure high email delivery rates.
Maintain List Hygiene Remove subscribers who don’t engage for a long time. A clean opt-in list is necessary for sender reputation, deliverability, and GDPR/PECR compliance. [See DMA UK Best Practice Guides]
Optimise Send Times Use analytics to find optimal engagement times for your audience. Consider working hours, evenings, and avoid unsociable hours. Try alternative days/times.
Personalise Appropriately Using a recipient’s name can increase engagement, but ensure this data usage is within the original consent and treated securely under GDPR.
Clear Call-to-Action (CTA) Get what you need the user to do visible in an instant (e.g., ‘Tap here’, ‘Quote now’, ‘Shop sale’).

Step 6. Automate Your SMS Affiliate Marketing

Monitoring, analyzing, and optimising SMS campaigns, particularly when dealing with numerous traffic sources and compliance, is impossible without specialized software. Serious affiliates greatly appreciate full-fledged SMS solutions natively integrated with web, email, and call tracking platforms – preferably in one software suite for an end-to-end perspective.

This is where solutions such as  E-Delivery, Phonexa’s SMS and email marketing software, come in. It provides performance-marketing-oriented features that help with campaign management on a savvy basis while being compatible with Phonexa’s broader suite.

 

Here’s what Phonexa’s E-Delivery is about:

  • Granular segmentation: Examine customer sources, SMS behavior patterns, and path-to-conversions. This aids in facilitating micro-segmentation and highly personalized messaging appropriate to audience segments.
  • Advanced reporting: Have access to real-time and summary reports (campaign performance, delivery rates, recipient engagement) to quickly optimize poorly performing campaigns and scale up successful ones.
  • A/B testing functionality: Systematically test different SMS copy, CTAs, send times, or offers (often comparing several templates simultaneously) to determine what works best with your audience.

 Build your plan now, or book a demo to learn more about Phonexa. 

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Step 7. Coordinate SMS with Your Other Affiliate Marketing Channels

The final step in your SMS marketing strategy is coordinating your text campaigns with other marketing channels. And this is where E-Delivery shines.

  • E-Delivery synergises with Opt-Intel, a suppression list management solution that helps keep your SMS list clean and active, which is critical with the GDPR/PECR ruling.
    • E-Delivery unifies data streams with Phonexa’s other solutions, creating a single view of performance across campaigns.

    Phonexa aims to provide this converged ecosystem, consolidating the key affiliate marketing tech stack into one platform, closing data gaps, and enabling affiliates to maximize campaign performance across all touchpoints of relevance.

     

    Get Phonexa’s eight proprietary solutions at a single price (online price calculator):

    LMS Sync Lead tracking & distribution software
    Call Logic Call tracking & distribution software
    E-Delivery Email & SMS marketing software
    Cloud PBX Cloud phone system
    Lynx Click tracking software
    Opt-Intel Suppression list management software
    HitMetrix User behaviour recording & analytics software
    Books360 Automated accounting software

    Ready to take your affiliate business to the next level? Build your plan now, or book a demo to learn more about Phonexa. 

    Book a demo

    Frequently Asked Questions

    What are the best SMS marketing strategies for affiliate marketing?

    Successful strategies usually have triggered messages (such as a reminder of an abandoned cart, if compliant opt-in) and correctly designed drip campaigns to engage leads. However, the strict foundation, especially when business is done in regulated exchanges like the UK, is strict compliance with such regulations as GDPR and PECR – clear opt-in consent before sending *any* marketing SMS and providing easy opt-out at all times. A relevant, valued, timely message to a fully opted-in base is essential.

    What are the best ways to get SMS traffic compliantly?

    Build your SMS list ethically by obtaining explicit, informed opt-in consent from individuals, particularly adhering to regulations like GDPR/PECR if targeting relevant markets (like the UK). This can be done via website forms (with clear checkboxes, *not* pre-ticked), dedicated landing pages, social media lead ads (with compliant consent mechanisms), or offline methods (ensuring clear consent language). Never purchase mobile number lists. You can drive traffic from your website, blog, social media, and webinars, but the consent mechanism must always comply with applicable regulations.

    How do you effectively drive traffic to your affiliate links in SMS messages?

    Aside from compliance, drive clicks by sending targeted messages at the optimal times (test for your audience), tailoring where appropriate and compliant, offering real value (special offers, useful information), and creating a clear, good call-to-action (CTA) within the character limit.

    How do you choose an affiliate program for SMS marketing?

    Review the following potential programs critically: commission structure (and payment currency, e.g., GBP if necessary), offer pertinence to your target market, quality of creative material (SMS examples), reliability of tracking software, unambiguous limitations, and above all, visible understanding and compliance with applicable compliance laws for your target audience (e.g., UK GDPR/PECR). Enquire directly of potential partners about their compliance policy for the markets you work within.