DYNAMIC PRICING MODEL
While CPX can offer campaigns utilizing all traditional static pricing models, CPX Interactive's core model is to run dynamically optimized campaigns that "learn" - and "flow toward" - the most efficient mix of network sites for each specific campaign. This real-time optimization of campaign placements, based upon specific campaign goals, set the stage for CPX to offer a powerful hybrid pricing model ... Dynamic CPM.
Dynamic CPM is a variable pricing model (never going above a designated maximum CPM) that continuously reflects the most efficient CPMs needed to reach maximum achievable Return on Investment (ROI) on a "per site" and "per placement" basis.
Dynamic CPM campaigns are optimized from the very first impression most efficiently back into an advertisers' target ROI.
Static vs. Dymamic CPM Campaign Comparison
(static non intra-campaign optimization)
Flat CPM of $1.50 - Ads served across 4 sites (A,B,C,D)
Site A – $1.50 CPM = 40% ROI
Result: ads will continue to run on site, though CPM is too high
Site B – $1.50 CPM = 85% ROI
Result: ads will continue to run on site, though CPM is too high
Site C – $1.50 CPM = 150% ROI
Result: though site is exceeding goals, only 1/4th of budget will continue to run on site
Site D – $1.50 CPM = 1% ROI
Result: site will be removed from buy, but only after "testing period"... until then, 1/4th of budget has been wasted.
(dynamic)
Dynamic CPM with $2.00 set as "maximum"
Ads served across 4 sites (A,B,C,D)
Site A – $0.30 CPM = 250% ROI
Result: system will increase bid CPM to increase number of impressions, while still backing into campaign goals
Site B – $1.00 CPM = 102% ROI
Result: system found proper CPM on site, will continue serving
Site C – $1.80 CPM = 104% ROI
Result: system found proper CPM on site, will continue serving
Site D – $0.25 CPM = 21% ROI
Result: system will remove this site from buy in real-time
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