Recommendations for choosing the CPM or CPC payment model:
If the click-through rate is high, it is more profitable to pay for impressions.
If your CTR is low, then when paying per 1000 impressions you risk getting fewer clicks than when paying per click.
If you've launched CPM ads and aren't happy with the click-through rate, you can either change your creatives and targeting settings or switch to a pay-per-click model to get more clicks without changing your budget.
Let's imagine that you are deciding whether to run an ad at a price of 50 rubles per 1000 views or at a rate of 5 rubles per click. Your budget is 5000 rubles.
If you choose the CPC model, the budget will be enough for 1000 clicks (calculated using the formula: budget / cost per click = 5000 / 5 = 1000).
And if your choice is CPM, you will get 100,000 impressions (5000 / 50 * 1000 = 100,000).
If the CTR is, for example, 2%, then when paying for impressions you will receive 2000 clicks, which is twice as much as when using the CPC model (calculated using the formula: impressions * clickability / 100% = 100,000 * 2% / 100% = 2000). In this case, it is more profitable to use payment by CPM
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What is oCPM?
In some advertising accounts, you may encounter an optimized benefits of using our amazon database cost-per-view (oCPM) model. For example, such a model is used when promoting applications in myTarget or when collecting applications on VKontakte.
The optimized model ensures that your ad is shown to the most interested users. You will need to specify the cost of conversion (the action you want the user to take, such as filling out a form). The advertising platform's algorithms will look for an audience that is more likely to take the action, without exceeding the specified bid.
The oCPM model is available in:
VKontakte (format “Collecting applications”, goal “Filling out a lead form”);
myTarget (optimization based on app installation cost);
Facebook.