SmartСPM is a pricing model based on the principle of a second-price auction.
What does it mean?
If you choose this model, you set a maximum CPM price that you are willing to pay, but the actual price will usually be lower due to the second-bid auction system. Your bid will be based on the next lower price on the slice of your campaign’s targeting. However, this cannot exceed the price you have set when starting a campaign. Thus, this model helps to reduce the cost of the CPM and remain competitive on the targeting.
After you have chosen the SmartCPM pricing model for your campaigns, you need to set a maximum price (CPM bid) that you are willing to pay per 1000 impressions.
An algorithm sets different bids for each ad zone according to overall demand and competition on your targeting.
This way, you pay less for the traffic that you receive.
Moreover, with our recent update, you can now use the {cost} token with your target URL and track impressions’ cost on your side:
When you click on ‘{cost}’ below the ‘Target URL’ settings, this token is automatically included in your TargetURL, so that you just need to add it to your tracking solution’s settings. And then you’re ready to go!
Please note that you need to choose CPC in your tracker’s settings to be able to track impressions’ cost.
What is the difference between CPM and SmartCPM?
Of course, optimization! The biggest advantage is that the SmartCPM pricing model helps to determine a CPM bid level that is most appropriate for every zone your campaign is running on and lets you remain competitive, while with the CPM pricing model, you will pay one fixed bid for all zones. Another great advantage is that you can set an individual custom bid (max CPM price) for every zone your campaign received traffic from. In order to do this, you need to expand a smartCPM campaign’s stats on the Dashboard page, click on a ‘pencil’/edit icon next to an individual zone’s CPM price and enter your own bid (please, bear in mind that it cannot be lower than a minimum CPM set for the geo of your campaign’s/certain zone’s targeting).
Custom bids for zones will help you to pay less for the traffic from zones that do not bring a lot of conversions, but you’d still like to keep receiving traffic from them at a lower price than on other zones. Conversely, you can increase CPM for zones where your campaign receives most conversions. This way, you will be able to optimize your campaign’s expenses and increase its effectiveness.
What is more, the SmartCPM pricing model helps to determine a CPM bid level that is most appropriate for every zone your campaign is running on!