CPM or CPC – How campaigns are served/rotated on Exo
With CPC campaigns, our system performs an automatic optimization: it sends more traffic to banners with higher CTR.
With CPM campaigns, the systems sends the same traffic share to all the banners.
Strategy: Calculate what CPC was on 0.30 CPM if CTR was really shitty, and bid that to collect data fast in first spot?
Frequency Cap Explained:
There are two major strategies:
1/ Focus on top impressions: set a small frequency capping (1 to 3) and a high CPM bid to get on top of the rotation of campaigns.
Advantages: Traffic performances are higher, very targeted traffic.
Drawbacks: Small volume and tough competition drives prices up.
2/ Reach middle or remnant inventory: set a bigger frequency capping (4 to unlimited) and an average or minimum CPM bid.
Advantages: Less competition, affordable prices. You get conversions on quantity over quality.
Drawbacks: Traffic performance is lower. High traffic volume means more work of optimization.
Note: Be careful when setting a high Frequency capping since you will spend your daily budget very quickly and can even exceed it.
Remember that an advertising message is normally displayed more than once as we know that the effectiveness of the message is based on repetition. By testing different type of campaigns and by playing with the cappings you’ll be able to fine tune your campaign to find the right exposure bringing higher profits.
How to get the most traffic from a placement:
Campaigns are ranked following their bids. Good traffic is usually more expensive because more buyers are competing.
1) Secure the first impression with a high Smart CPM bid and a low frequency capping (1 or 2 impressions / user / 24h).
2) Target the middle of the rotation with a medium bid and a medium frequency capping (3 to 5).
3) Get remnant inventory with the lowest price and no frequency capping.