Dynamic CPM for dummies

Dynamic CPM- What is it?

Written by Darya Ram

This Model actually combines 2 other models and solves issues that advertisers bump into on a regular basis.

Buying media on a CPA basis is seemingly genius, since there is no expenditure before revenue. However the issues that advertisers normally bump into are lack of volume and being dependant on other publishers. This also means that you will not be able buy media on the premium websites since they only work on CPM and therefore are losing huge amounts of traffic as well.

However buying Media on CPM does not guarantee results.

So the question is what to do?

The dCPM solution that has been working with most ad-networks already for a long time integrates these 2 previous models we discussed- CPA and CPM and solves the issues we had with each one of them. This is how it works:

They buy Media on a dCPM (dynamic CPM) basis- this means that the price changes and is not constant. So they can buy media for 2c and for $1.50 depending on the website, placements, day and time.

During the Campaign they know what their client’s CPA goal is. They optimize the campaign and find out where the acquisitions are coming from. Websites which are not giving the results are removed and websites which are converting correctly of course will have more spend. This way the client lands up paying the same price for the CPA but actually has paid for the media in CPM rates.

What is important to know though, is that since this is dynamic a client expecting 1000 acquisitions might get in the first campaign 997 acquisitions or 1005 acquisitions

However it will be as close to the goal as possible. On the second campaign since they know already where the acquisitions are coming from it is simply a matter of putting the budget in and getting the results. However they do continue to optimize and lower the CPA as well. In the beginning of the campaign the traffic is slow but once the Initial optimization phase (10-14 days) has been completed the process picks up speed and starts generating the acquisitions in volume.

Since the Client Retention for these ad-networks is extremely important ,it is very important to have open communication with the client during the campaign. The lines of communication need to be open. So if there are any issues or ideas while the campaign is running both parties work it out together.