Introduction to SmartCPA Pricing Model
When working with a SmartCPA (Cost Per Action) pricing model, it is essential to evaluate and measure the effectiveness of your offer first. This can be done through a Testing Period, during which the system gathers data to assess the performance of your campaign.
Key Elements to Understand
Minimum Conversion Cost
The minimum conversion cost can be as low as $0.001.
Conversion Cost
The conversion cost, also known as the CPA rate, can vary. Setting it too low might limit the system's ability to source high-quality traffic, whereas setting it too high might lead to inefficient use of the budget. A good starting point is ensuring that the CPA rate is 60-80% of the payout.
Test Settings
Test Budget
The test budget is the amount you allocate for evaluating your campaign. If the conversions produced during the test do not cover the cost of the traffic, the difference will be deducted from the test budget.
The minimum test budget for a CPA campaign is $10.
Recommendation: Adjust your test budget based on the available traffic volumes in the targeted GEOs. For optimal testing, it is recommended to allocate a higher budget for high-volume GEOs that have over 1 million impressions. We suggest setting a minimum of $30 for these GEOs. For huge GEOs with tens of millions of impressions, such as India, Vietnam, Indonesia, and Brazil, an even larger budget is recommended. We suggest setting a minimum of $100 for these GEOs. On the other hand, low-traffic GEOs like Bulgaria, Denmark, and Qatar should have a lower budget. We recommend setting a budget of $10-20 for these GEOs.
What is a Test?
A test evaluates the effectiveness of a campaign by sending a set volume of traffic to your offer and measuring the results. The test can be:
Free: If the cost of conversions exceeds the cost of the traffic used for testing, then the test is considered free since you only pay for the conversions.
Compensated: If the cost of conversions is less than the cost of the traffic used, the system covers the difference using the test budget.
On the Dashboard, you can see what the current test cost is, as well as separate costs for the zones that work according to their own eCPM. For this reason, you may see a campaign that is in the test with a cost that exceeds a previously set test budget.
Example Scenarios:
Campaign A (Free Test):
Test Budget: $10
Conversion Cost (CPA): $0.5
Conversions: 25
Total Conversion Cost: $12.5
As the total conversion cost exceeds the traffic cost, this test is considered free.
Campaign B (Compensated Test):
Test Budget: $10
Conversion Cost (CPA): $0.25
Conversions: 20
Total Conversion Cost: $5
In this case, the test is compensated as the conversion cost ($5) does not cover the cost of the traffic ($10), and the difference ($5) is covered using the test budget.
What Happens to Zones During and After a Test?
The purpose of the test is to identify high-performing traffic zones that produce conversions. Here's a brief summary of the process:
1. Identifying High-Performing Zones
The system evaluates zones based on conversions.
Lucrative Zones: Zones with more conversions are prioritized for more traffic.
2. eCPM Calculation and Traffic Purchase
After a zone generates conversions, the system forms an eCPM for it.
Traffic continues to be purchased from this zone, both during the test and independently after the end of the test.
3. Tracking on the Dashboard
The Dashboard shows the current test cost and separates costs for the zones that have finished the test and now operate based on their own eCPM.
Note: You might notice a campaign in testing with costs exceeding the previously set test budget. This happens because some zones have already established a competitive eCPM and moved into a separate rotation while the testing process continues for other zones.
This scheme ensures that your campaign focuses on the most profitable traffic sources, optimizing your budget effectively.
eCPM Calculation:
eCPM is calculated using the formula:
eCPM = (Conversion Cost * Total Conversions / Traffic Volume) * 1000For example:
Conversion Cost = $0.5
Total Conversions = 10
Traffic Volume = 10,000
eCPM = ($0.5 * 10 / 10,000) * 1000 = $0.5
End of Test Period and Results
Once the testing period is complete, the system evaluates the results based on internal metrics and assigns the Working status to the campaign. The testing period's duration depends on the ad format, test budget and traffic volume in the targeted GEOs. Tests can take anywhere from two to seven days to complete, depending on the ad format.
Testing Period Benefits:
Optimization: Automatically removes low-performing zones.
Traffic Sourcing: Prioritizes high-conversion zones for future traffic purchasing.
eCPM Formation: The test helps the system form an eCPM for ongoing campaigns.
Final Notes on Campaign Testing
During the test period, you cannot adjust the conversion cost or targeting settings of the campaign.
If you stop the campaign during the test, the process will resume from where it left off, extending the overall test duration.
This structured approach ensures that your CPA campaign is optimized for efficiency and profitability, focusing on high-performing zones and preventing unnecessary traffic purchases.