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Dynamic CPM

Considering a dynamic CPM campaign? Find out what how dCPM works, and how we can help you. 

The traditional cost per thousand (CPM) pricing is a fixed cost model brought forward from traditional media buying as a means of giving advertisers new to digital a way to measure cost and for media planners to forecast impressions. 

With the shift from second price auction to first price auctions in additional to advertisers wanting a more homogenous marketing strategy the need for a modified CPM pricing model is required.

What is dynamic CPM?

Dynamic cost per mille (also known as dynamic CPM or dCPM) is a variant of the traditional cost per mille (CPM) pricing model. dCPM allows for fluctuations in the cost of impressions and adapts in real time based on the value of an impression which is impacted by such factors as time of day, domain and placement. 

As not all impressions are created equally a dCPM enables marketers to pay an optimised price each impression which in turn aids in delivering campaign budgets efficiently. 

The benefits of a dynamic CPM model 

There are three key benefits to dynamic CPM.

1) Flexibility

As advertisers want to run multiple strategies for a single campaign it shouldn’t be limited by a fixed CPM. A dynamic CPM enables the flexibility to appropriately optimize campaigns towards KPis whilst being able to adapt to the variety of inventory formats being applied in real time.

2) Buying efficiency and performance

Fixed price CPMs assume that all impressions are of equal value. However, based on the campaign’s goals and objects it’s safe to say that this is not the case. Dynamic CPMs enables us to optimise each impression based on value and be more competitive within the auctions to ultimately drive better performance for our campaigns.

3) Transparency

Transparency is always top of mind when it comes to media buying. Dynamic CPMs enables us to buy better performing inventory that meets KPI requirements whilst still being able to remain transparent on which inventory was bought and delivered best results. 

Get in touch to find out more about how we can help you with your dynamic CPM campaigns.