CPM (Cost Per Thousand Impressions) pricing is a consistent pricing model, whether the inventory is purchased through exchanges or directly from publishers. Once an ad vendor has purchased inventory, they can resell it to advertisers in a variety of ways.
Common Pricing Models
CPM (Cost Per Thousand Impressions):
The advertiser pays the vendor a transparent rate based on the actual CPM cost of the inventory. The vendor makes their margin by applying a fixed percentage to the inventory they purchased.
CPC (Cost Per Click):
The advertiser pays the vendor for every time someone clicks on an ad. The vendor makes their margin by maximizing the difference between the actual cost of acquiring the inventory and the CPC the advertiser pays.
CPA (Cost Per Acquisition):
The advertiser pays the vendor every time an ad results in the visitor completing a transaction. If a person completes a transaction within a certain amount of time after viewing an ad, the vendor can attribute that conversion to the ad campaign.
We use a dynamic CPM model because it best aligns with the interests of our advertisers. This ensures greater transparency, flexibility, and control over your campaign.
Dynamic CPM pricing encourages transparency and allows us to optimize for your specific goals.
With dynamic CPM pricing, we can focus on customer goals and adjust campaigns based on their specific requirements, while remaining transparent about which inventory was used to deliver the best results.
There are a range of campaign types, and even a single advertiser might want to accomplish different things from one program to the next. A pricing model shouldn’t dictate campaign goals.
Dynamic CPM gives you the flexibility to appropriately target all audiences for all types of campaigns. Pricing on dynamic CPM gives advertisers the option to run a variety of campaigns to target a wider audience, and adjusts when those campaigns optimize over time to meet a range of advertising goals.
Regardless of pricing model, your goal is to maximize return on investment – but how you measure this may differ depending on your campaign type and goal.
Be careful not to make adjustments that could lower performance, such as adjusting frequency caps, running a seasonal flight, or excluding publishers. If the platform is only rewarded for clicks or conversions, there is no incentive for allowing those campaigns or for reporting on their success.
By structuring pricing around dynamic CPM – the same model we use for buying inventory – we can focus on meeting campaign goals.