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CPM or CPC for low Budget?

Discussion in 'Newbie Helpdesk' started by Guilly, Jan 10, 2017.

  1. Guilly

    Guilly Affiliate affiliate

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    Hello Guys

    My AM has send a gaming offer that according to her is having 0.5 - 1.5% CR which she says is converting well. So I decided to run this but the geo for is US and we all know traffic form US is a lot more expensive than other tier 2 countries. My traffic source is asking a minimum of $ 4 CPM and an daily budget of $ 60. Doing a quick math it would correspond to nearly 15000 impressions daily for that GEO.
    But i have read that if my budget is low, CPC would be a best model because the source will try to delivery as much impressions as possible but I will only pay when a click happen. The minimum bid suggested for that traffic is 0.025 cpc or $25 per 1000 clicks.
    Also on the article I've read, it says that on CPM model the optimisation is a must but with CPC you actually don't need to optimise because the clicks that are coming are high quality according of your bid.

    Who is the winner here guys, Which one should I go for.

    Your opinions are very much appreciated
     
  2. terraleads
  3. internalsoul

    internalsoul Moderator moderator affiliate

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    Go for CPC model first. You don't even know the ctr of your creatives. If your creatives CTR is low then with CPM you will always be in a loss. Since you are on low budget so CPC should be your best choice.

    Not sure where you have read that, but the statement is false. You need to optimise both CPC/CPM at the start of your campaign. Once the campaign is optimised you can replicate and shift to CPC to CPM or CPM to CPC based on your calculations and whichever model is more profitable. So you need to optimise your campaign, whichever model you choose at the initial stage.
     
    Guilly likes this.
  4. Cihad

    Cihad Affiliate affiliate

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    I have never run a campaign in the US with a gaming offer.

    But If we are comparing CPM and CPC, as @internalsoul mentinoed it depends on your LPs or banners.
    Right now I am trying to raise my CTR with testing different banners, So CPM sounds like "I can pay less with my marketing material".

    LOW BUDGET is not true definition, you must say some numbers, 10$, 100$.. (50$ is high budget for me :)

    Good luck with your campaign.
     
    Guilly likes this.

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