What is dCPM?
There are various digital pricing models that businesses can choose from, each with its own advantages and disadvantages. Among those, Dynamic Cost Per Mille(dCPM) is an pricing model that costs for each ad impression in a dynamic fashion. In dCPM model, the bid price increases or decreases for every impressions based on various aspects like goal, audience, domain, time, placement, etc. Whereas, the traditional CPM model charges each impressions with a fixed cost.
Quick case:
When you're running an advertising campaign, you have two options to choose the pricing model.
- CPM (Flat CPM)
If you chosen the CPM pricing model and give the CPM price as $20. In this case, the cost for 1000 impressions is $20 and the cost for each impression is 20/1000 = 0.02.So, this campaign has spent 0.02 for each delivered impression. Due to the static price, this campaign will deliver its expected impressions.
- dCPM (dynamic CPM)
If you chosen the dCPM pricing model and the goal is given as 0.30% CTR and the average CPM as $20. In this case, the cost for each and every impression varies but the average cost for 1000 impressions will not be higher than $20.
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