The Fourth Digital Advertising Campaign Type -
A dynamic CPM or dCPM campaign works the same as a CPM campaign
in that you set a bid that is a flat price for one thousand
impressions and add a CPC or CPA goal to optimize toward. The
important difference is that with CPM, the ad server can only pay
the exact bid amount for each impression, regardless of the goal.
With dCPM and with the advent of RTB exchanges, each ad call can be
evaluated in real time to determine what the impression is worth
and the DSP can bid that price. In the end, it will average out to
the set bid price or just under.
For example, if you have a dCPM bid of $2.00, your DSP might bid
50 cents for one impression and $3.50 for another, depending on its
value. The dCPM model is ideal for RTB exchanges because, depending
on the DSP's technology infrastructure, it can potentially maximize
performance by having the flexibility to "hand pick" each
impression and pay exactly what it's worth. With a flat CPM model,
you would never have access to those more valuable impressions,
which are the more likely to convert. Likewise, you may overpay for
many impressions that are worth far less than the CPM bid
Every advertiser is after the same goal: To maximize their ROI.
The power of dCPM combined with RTB exchanges creates a whole new
level of competition and performance potential that has been and
will continue to generate significantly higher ROIs for
advertiser's who have access to the technology and