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Which is the best Voluum Cost Model to use? (4)


08-06-2016 07:33 PM #1 aloeveraa1491 (Member)
Which is the best Voluum Cost Model to use?

Hello! This is what it says on the Voluum knowledge base FAQ
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Voluum has four cost models available to help you track your traffic spend (recommended).

- CPC (Cost Per Click) – calculated using the number of visits to the campaign URL multiplied by the CPC value.
- CPA (Cost Per Acquisition) – calculated as the number of conversions multiplied by a defined CPA rate.
- CPM (Cost Per Mille/Thousand) – cost is based on dividing the value of the bid by every 1,000 impressions generated by anad.
- Auto – only available if the traffic source supports a cost parameter and placeholder; See 50onRed Intext example screenshot below;

2 questions:

1) Which cost model should I be selecting as a beginner?
2) And what's the pros and cons for selecting each one?


08-06-2016 08:38 PM #2 shepherd (Member)

I would select either CPM if your traffic source handles a CPM model, or CPC if you pay per click. These depends on how you set your bids. If your traffic source allows it, i'd select Auto. Keep in mind that for example between PopAds and Voluum there is a discrepancy in the cost displayed in Voluum and the actual costs in the traffic source, so you'll have to manually adjust costs at the end of the day.
You can only really calculate the CPA model when you've already gathered some data on how the offer converts and how much that costs you. I wouldn't select this one as a beginner.

Hope this helps


08-07-2016 11:29 AM #3 zeno (Administrator)

The cost models have no best/worst option, only the appropriate one - don't confuse this with how your traffic source works, these are separate systems which can be linked is different ways.

If you pick CPC, the default cost will add per tracked visit to your tracking link. This is what you should use, because its the most likely thing you will be able to gauge well (your cost per click average from the traffic source).

If you do CPA, it will be per conversion you make. This is not appropriate in 99% of cases, as you are probably not getting charged by the traffic source only when a conversion happens for you.

If you do CPM, you need impression tracking as these events happen outside of the tracking system. These only works properly if you use Voluum's impression tracking pixel. You likely are not.

In most cases you want to pick CPC and put an appropriate amount e.g. 0.10 and just adjust it over time.


08-09-2016 03:18 AM #4 aloeveraa1491 (Member)

Quote Originally Posted by zeno View Post

In most cases you want to pick CPC and put an appropriate amount e.g. 0.10 and just adjust it over time.
Hi Zeno! Thanks for the quick reply, I'd just like to check with you regarding one thing:

Can you explain it to me in more detail: What do you mean by put an appropriate amount for CPC and adjust it over time?

At the beginning of the tracking process (when you haven't sent any traffic yet), how do you gauge what to put as CPC and how much to adjust? (Eg. you gave the example of 0.10)


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