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: CPM and dCPM
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.
Advantages of dCPM
Transparency
With dynamic CPM pricing, we can focus on customer goals and adjust campaigns based on their specific requirements, while remaining transparent about which inventory was used to deliver the best results.
Flexibility
Dynamic CPM gives you the flexibility to appropriately target all audiences for all types of campaigns. Pricing on dynamic CPM gives advertisers the option to run a variety of campaigns to target a wider audience, and adjusts when those campaigns optimize over time to meet a range of advertising goals.
Performance
Regardless of pricing model, your goal is to maximize return on investment – but how you measure this may differ depending on your campaign type and goal.