After speaking with a ton of advertisers, pretty much everyone knows we serve traffic based on CPM, but how many of you know how CPM influences your traffic?
Your CPM will have an effect on your CTR because we serve ads based on CPM price. The highest bids get their ads shown to the user first, followed by the next highest and so forth. So if your bid is too low, then the impressions you receive will be from people who have already seen 20 ads (thus the likelihood of clicking and converting are low).
- So are you bidding $0.30 in the US and getting less-than-desirable results? Your CPM bid may be a quick fix.
Your CPM will also have an affect on your traffic volume because the highest bids get their ad quota fillled first, followed by the next highest and so forth. So if your bid is too low, you might not get the priority to start getting a lot of traffic to your site & hitting your daily maximum spend.
- Only spending $10/day on a campaign? Try raising CPM's
However, please note that if you plan on raising CPM's, you'll get a LOT more traffic that you're used to. So generally, you'll have to tighten up the targeting to ensure this increase flow goes to the correct demographic.
Increasing CPM's without tightening up your targeting is like trying to fill a Coke bottle w/ a bucket of water without using a funnel.
Hope this helps!
