Programmatic’s True Value
Too often, cheap inventory is fraud-ridden and won’t actually improve your business results. With a dCPM model, there is no advantage to serving to these kinds of low-quality impressions. Instead, dCPM focuses on hitting the key performance indicators (KPIs) that are most important to you by flexing the spend up or down based on the likelihood that the impression will give you the result you want, such as a conversion.
This flexibility also means as the campaign progresses, you can reinvest any cost savings back into the campaign to maximize the budget. For example, if you purchase the inventory at a lower price than expected, you will receive more impressions to fulfill the budget and vice versa.
Plus, dCPM pricing gives you a better view into where your partner’s true value lies – not simply in the delivery, but in the strategy behind the execution. How they adjust bids. How they ensure high-quality impressions. How they gather and analyze data to help inform your next campaign so you continue to improve month after month.
Taking advantage of auction mechanics to gain efficiencies and insights like these are the real benefit of running programmatically. And they can only be fully achieved on a dCPM model.
Programmatic pricing has become a hot-button conversation in the ad tech industry. As IO-based business is decreasing with more and more digital advertisers embracing a flat-fee model, they are getting access to a dedicated team, a suite of premium data products, and valuable strategy and analytics that couldn’t have been cost-effectively included on a fixed CPM plan.
In many cases, these models also include performance-based bonuses for hitting certain benchmarks against campaign goals using dCPM strategies – the CPM is irrelevant when actual results are the focus. The idea is that this gives you the accountability you want from partners, and it enables programmatic experts to put more skin in the game.
But no matter the partner you choose, one thing is for sure, if you continue to cling onto fixed CPMs, then you’re going to miss out on the real benefits of programmatic. Reach out to us to find out more about how you can spend your media dollars more efficiently.