– Conclusion –
How CPC and CPM compete in general?When CPC and CPM campaigns compete for the same Ad placement, the two types of ads are compared against each other on how much they’re effectively willing to pay for the impression. With a CPC model, first, you need to determine the eCPM after the first casting period in order to know how it will compete against CPM. On the other hand, a CPM model depends on the maximum bid amount that you are willing to pay for every 1,000 impressions.
How CPC and CPM compete inside Traffic Factory?
CPC and CPM campaigns actively compete against each other based on an eCPM vs CPM inside impression and re-impression system. CPC and CPM impressions are usually displayed first, but when the re-impressions have a better eCPM/CPM, they can be displayed before some impressions and get better positions. So in both models and systems, the better your eCPM/CPM is, the higher will be your position. Always consider that the “frequency cap” can make a difference since this determines how long you want your unique user session to last. Both models have the chance of obtaining first-page view positions and the competition is equal for all campaigns.
CPC vs CPM
|Needs more attention on CTR / Campaigns targets / Banners with clear offers||More attention needed on Bids / Positions / High CTR Banners / Conversions|
|Gives a slower position evolution||Gives a faster position evolution|
|Can be optimized with Bid + CTR, and smart & precise target filtering||Can be optimized by tweaking with your bid and banner quality|
|Must include clear offers on banners||Must include very attractive banners|
|Better on lower spots||Good for all ad placements|
|Avoid creating “miss-click” banners||Mass click banners|
|Paid memberships / paid websites / web store||Convert free trials / Collect email addresses / branding|
|Long term strategies||Faster results, short term strategies|
|Budget control||Volume control|
|Less campaign management||The system is easy to understand|
- CPC banner give a clear and precise offer, mainly information based to avoid miss-clicks.
- CPM banner is very attractive and makes users want to click on them to discover what is behind it.
- CPC campaign takes advantage of target filters to only display the offer to its intended audience.
- CPM campaign takes advantage of campaign options (re-impression, reservation, custom frequency cap, display rate) to optimize the volume of traffic.
|OPTIMIZATION & OPTIONS||CPC||CPM|
|Daily budget control|
|Global budget control|
|Frequency cap control|
|Display rate control|
– THE END-
RTB: Real Time Bidding.
CPC: Cost Per Click.
CPM: Cost per thousand impressions or technically Cost Per Mille.
eCPM: Effective Cost Per Mille. (Ad Spend x 1000) / Ad impressions
CTR: Click-through rate (CTR) is the number of clicks per one hundred impressions.
ROI: Return On Investment. This is a value that measures the performance of your campaign and to find out how profitable your ad is. The most basic formula to ROI being: Ad Profit / Ad Cost x 100 = ROI %