Dynamic CPM
Our default Pricing Model is Dynamic CPM, i.e. cost per thousand impressions. 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.
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.
Below is a comparison of the most common pricing models.
|
CPM (Cost Per Thousand Impressions) |
CPC (Cost Per Click) |
CPA (Cost Per Acquisition) |
|---|---|---|
|
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. 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. |
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. |
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. |
The cost to serve an Ad
You pay for ad space and we retain a small percentage for serving your ad. Your total spend is the cost of buying ad space to deliver your ads. This is called dynamic CPM pricing.
Ad space is bought and sold through virtual auction and prices fluctuate depending on demand. The more advertisers vying for a particular impression, the higher the cost will be. Our job is to determine where your money will be most effective; we bid to win the highest quality inventory at the lowest possible price.
Your Cost per Thousand Impressions (CPM) on a Web campaign will be much lower than your Facebook campaign. Once your campaign begins serving, check for CPM over a particular date range to see the average cost within that period. Learn more about how BidIQ determines when and how much to bid.
Pricing by Clicks (CPC) or Conversions (CPA)
Advertisers often ask us if we price by CPC or CPA. The short answer is that we price dynamically based on CPM so that costs reflect the true value of the inventory we buy for you. We want to drive clicks that matter.
How Much You Should Budget
There are two variables in campaign spend: the budget you set and audience size. Check out our budget tips to see what will likely work best for you.
If your ad spend is consistently hitting your weekly budget, that's an indication that you can expand your reach. Increase your budget in increments until you're spending your budget the majority of the time, but not all of the time.
Benefits of Dynamic CPM Pricing
Transparency
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.
Flexibility
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.
Performance
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.