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What exactly determines the CPM? (9)

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Hey, I just planned a bit on Decisive and saw that the CPM for different countries can have a really wide range. So what I am curious what exactly determines the CPM?

I am planning to launch a campaign in southamerica and they have a lot of spanish speaking countries as you know. So would it be better to just target a country with the lowest average CPM or is there any significant reason I should stay away from the cheap CPMs?

Thanks in advance!

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profitablitlity/competition, ie. supply/demand at a certain CPM is what determines that CPM for that placement/site/app

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Yeah, supply and demand + the potential/expected revenue generation from users of that country.

If you compared advertising to the US with advertising to Romania on some traffic source, with competition ignored, the CPMs would differ due to differences in GDP, affluence of the population, and consequent typical payouts from affiliate networks or user LTVs from products/services, leading to a greater perceived value of impressions.

You could build a new traffic source with $0.5 CPM on every impression network wide and then have it adjust over time to reflect competition of course, though most networks will set minimums for countries based on some sort of ranking (e.g. Tier 1, 2, 3).

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Hello aaaart
How are you

My name is Carlos, I'm new in the forum.

The hispanic is maturing fast and coming online.
I'm planning to promote a product there too.

God luck.

If you need a quick hand with anything in Spanish
let me know. It's my native language.

Take care,

Carlos

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Thanks for your answer and excuse me for this noob question, but what do the abveration GDP and LTV mean?

@Lovekaisei Thank you for your help, but I have already a spanish friend who will help me out with the translation. But really nice of you. Keep it up!

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GDP = Gross domestic product

"GDP estimates are commonly used to measure the economic performance of a whole country or region, but can also measure the relative contribution of an industry sector."

LTV = lifetime value. When dealing with a market, product or service where you don't sell once - or don't sell everything all in one go, you look at how much revenue a client/user generates over their average lifetime of being a consumer of yours.

For example, a service product costs $1 for a free trial. The service then becomes a $10/month subscription for premium service and a there is a $99 upsell somewhere. After getting a lot of data, split-testing, etc., the owners of this product know that on average the users who buy from them spend $65 over a 1-year period.

So, upfront they get $1 of revenue from a user - but they know that on average they will get $65, and this is the approximate lifetime value of a customer to them. Hence why they might pay out $20 on an affiliate offer for a $1 trial registration.

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Awesome man, makes sense now. So I have some other questions and I would be really happy if you guys could give me your opinion on that.

I want to follow the Mobile Appetiser Guide, but I am not sure If I first test country A with a low CPM and then country B with the higher one, or splittest both instantly and kill the most losing one.

Example: Country A - CPM $0.10 / Country B - CPM $0.40

What caumren recommends is chosing 1 country and go app/wifi, app/mobile, site/wifi and site/mobile.

My idea is to do country A/app, country A/site. country B/app, country B/site, find the better performer and adjust from there and splittest for wifi and mobile then.

What do you recommend? Budget isnt low, but I kinda dont want to run all 4 campaigns for each country simultaniously, because I am afraid to be a bit overwhelmed, since this will be my first time ever. Or isnt this a big issue as I think?

Thanks in advance lads and ladies!

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If the same offer allows multiple countries then split-testing country is a good variable to attack first as this can make a huge difference.

So, doing the splitting as you suggested makes sense but be aware that WiFi vs Carrier usage can make a huge difference as well.

If you want to cosolidate testing better, I would do the inverse: country A/WiFi and Country A/carrier vs the same but country B.

Why? because Decisive has separate tabs for app and site placements making it easy to see if sites or apps are doing better and to cull these separately.

However if you did WiFi+Carrier in one campaign for apps, you can see the apps performance but won't be able to split this data by the connection used. You could do so in Voluum but that will only give back end performance data.

If you're not quite sure what I mean, just trust me - splitting by connection will make things easier than splitting by app/site (on Decisive at least).

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Anytime!

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