Media buying models — Mobile Wiki

The purchase of traffic for a site can be executed in many different ways. Selection of the buying model is influenced by the following factors:

1. Customer’s business segment

2. KPI

3. Mobile marketing budget

For example, it is more lucrative for an online clothing store to pay for orders through an application, and for the registration of new users for a taxi service.

1. CPC (Cost Per Click)

Payment for each click on an ad

The price of the click is influenced by the targeting options, ad delivery time, СTR (click-through rate) and relevance to the query. The purchase of traffic for a site with the use of this model does not account for the further actions of the user on the site or the app. The main problem of purchasing via the CPC model is the high probability of attracting low-quality traffic.

2. CPM (Cost Per Mile)

Payment for a thousand displays of an ad

This model is more often used when running display advertising campaigns aimed at maximum coverage.

3. CPI (Cost Per Install)

Payment for installation of an app

This is the most popular payment model on the market for mobile application promotion. It provides a clear understanding of the user acquisition cost, who installed and opened the app. Its disadvantage is that it does not involve an assessment of the user’s further actions in the app. We recommend combining payment via CPI with other KPIs that will be able to protect against motivated traffic and fraud.

Payment for a download can also be used with targeted purchase of motivated traffic.

4. CPA (Cost Per Action)

Payment for a specific targeted action

5. CPO (Cost Per Order)

Payment for a placed/confirmed order

6. CPS (Cost Per Sale)

Payment for a completed purchase

7. CPL (Cost Per Lead)

Payment for a lead

8. Pay Per Click Out

Payment for transfers from advertising sites to third-party sites.

9. CPV (Cost Per View)

Payment for a view of the advert (usually video).

10. CPE (Cost Per Engagement)

Payment for an interaction with an ad.

11. CPCall (Cost Per Call)

Payment for a targeted call

12. Revenue Share

Interest payment on income from the attracted user.
It is used in cases where the conversion of a user into purchase and overall margin is stable. It is usually implemented after successful projects using other payment models.

Depending on business objectives, advertisers choose the most effective buying models for themselves. For example, if the objective is to increase the coverage of the advertising campaign, then it is better to choose the CPM model, as the other models are likely to narrow the potential audience. For application installations, it is more appropriate to use CPI payment, and then further optimize the campaigns based on the advertiser’s internal data. It is more logical to promote video formats using CPV, especially now since there is an opportunity to pay for a user-reviewed video while gaining a more prolonged contact.

Within the framework of myTarget the following media buying models of the market are in demand: CPM, CPC, CPV, CPI. Our clients choose the best payment models for themselves based on their current goals.

Jacob Peisahzon

Sales Department Director at myTarget