– 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
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
CPC vs CPM
SYSTEM
| CPC | 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 |
How to figure out which one is the best?
In every model, the Key P
1- Determine if your banners are built for very targeted clicks (CPC) or a higher click volume strategy (CPM).
2- Figure out what is the main goal of your campaign; Budget Control (CPC) or Fast Statistics & Results (CPM).
3- Make sure to include the potential of exposure as your final choice, lower exposure spots like footer or horizontal (CPC) or higher exposure like header or square (CPM).
4- Your type of offer is also a decisive factor. CPC is a better model for paid offers (memberships, content, stores, …) and CPM for free offers (trials, free subscription, …)
GOALS
| CPC | CPM |
| 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 |
Tips
An efficient:
- 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.
A good:
- 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 |
| CTR optimization |  | |
| BID optimization | | |
| Daily budget control | | |
| Global budget control | | |
| Dayparting control | | |
| Frequency cap control | | |
| Re-impression control | | |
| Display rate control | | |
| Reservation | |
– THE END-
GLOSSARY
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