Why aren’t more ROI advertisers switching to dCPM?

  • by ownerIQ
  • May 09, 2017

In a fast paced, ever changing digital media environment the demand for transparency, efficiency, and scalability in digital media campaigns is constant.

Rightfully so, advertisers are becoming increasingly more involved in the details of their media campaigns demanding to know what percent of their budgets are being spent on raw media, on data, and other various fees.  Media partners like ownerIQ are suggesting switching to dCPM to help better achieve those campaign performance must-haves.  dCPM brings advertisers the most effective media at the lowest possible cost, enabling them to maximize their ROI.

What is dCPM?
dCPM is dynamic cost per thousand impressions. The cost of the impression fluctuates and changes in real-time based on the worth of the impression towards the campaign’s overall goal, allowing advertisers to be more efficient with their media dollars.

What is the difference between flat CPM and dynamic CPM?
In flat pricing the advertiser has a fixed number of impressions and a fixed rate. In dynamic pricing the advertiser has a set budget, impressions and rate change. If media cost increases, impressions decrease in a dynamic model. On the other hand if media cost decreases, impressions will increase with a dynamic model resulting in more scale and reach. The flat CPM model doesn’t benefit if the media cost decrease because scale is fixed.

What are the benefits of a dCPM model?
The dCPM model allows an advertiser to have more insight into the cost of media so they can see where their media dollars are going. It removes the black box and gives advertiser transparency into how much of their budget is going to raw media, data, and other various fees. With dCPM there is more flexibility to improve campaign performance because the media cost can be changed freely, giving the advertiser more control over the campaign’s performance. There are also efficiency gains with dCPM, you are paying a higher media cost for impressions that are going to have the most impact on campaign performance and less on those that won’t. Lastly, because of the efficiency in spending the budget with dCPM, an advertiser has the potential to reach more users and serve more impressions than if they were running under a flat CPM model. Since impression volume can fluctuate with dCPM, if media cost decreases it results in increased scale.

Will switching to dCPM improve performance?
Switching to a dCPM model will give the Advertiser and the media partner more flexibility when optimizing a campaign. If media costs are fluid, Average Media Cost settings can be adjusted to try and reach more qualified users and in some cases more valuable inventory.  Because dCPM allows for more efficiency, a campaign can see added reach with more impressions and more opportunities to get users to convert or take action, resulting in a lower cost per action.

At ownerIQ, we pride ourselves as being the industry leader in transparency, so it is important to us that our Advertisers understand the ins and outs of their campaigns.

To help further accomplish this, we provide our clients with Transparent Media Reports showcasing how frequently we are paying for impressions at a certain price point.  Our technology evaluates and scores all opportunities and determines when it makes sense to pay as low as $0.50 and as high as $30.00+ for an opportunity based on the likelihood for that user to take the desired action.

To learn more about dCPM, Transparent Media Reports or ownerIQ, please reach out to your ownerIQ representative or contact us here and we will have a representative reach out!

Categories:Posts from 2017


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