ID 14. Maximize conversions with target CPM and CTR (pay for media cost, monthly budget)¶
This strategy aims to buy the maximum available volume of conversions with a CTR more than or equal to a specified target and a CPM less than or equal to a specified target. It will try to buy the cheapest traffic available that converts the best while maintaining the target CTR.
As it aims to to buy as many conversions as possible, it requires a learning period that will let the strategy identify convertible traffic sources and optimize media buying for them. The recommended period to allow the prediction engine to adequately learn is a minimum of two weeks with a minimum daily budget of 500 USD.
This strategy is recommended if you want to maximize the volume of conversions while having a fixed CTR and a maximum CPM in place, and it is usually used to maximize conversion volumes while maintaining a guaranteed volume of impressions and clicks.
Budget Factor |
Description |
|---|---|
Payment Model |
Pay for media cost |
Primarily Goal |
Maximize conversions volume |
Use Case |
Maximize the volume of conversions while having a fixed CTR and maximum CPM |
Budget Pacing |
Evenly |
Budget Types |
Monthly |
Recommendations¶
You must take into account that buying conversions requires a learning (exploration) period for the prediction model to identify the probability of a conversion and enable it to buy the most convertible traffic. If you launch the line item without an explorational period, the strategy can’t define the most convertible traffic and provide the expected outcome.
Also, to track conversions correctly and provide all of the required signals to the prediction engine, you must use the correct pixel setup. Ensure you activate the Optimize checkbox for your conversion tracking pixels.
Strategy Settings¶
Budget¶
The total budget of the line item includes margin, extra fees, and media cost. This strategy will spend 100% of the budget during the specified flight dates. The budget will not be fully spent if some settings, e.g. CPM, margin, targetings are too strict, as there will not be enough inventory to purchase.
CPM¶
The CPM in this strategy is an upper restriction for the optimization engine, i.e. the average CPM will never be higher than specified. As the strategy has lifetime pacing, it can buy inventory with a CPM higher than specified, but the final average CPM will b be equal or lower than specified. If the strategy can’t buy conversions within the specified CPM, it won’t buy any conversions.
CTR¶
The CTR in this strategy is a goal for the optimization engine i.e. the average CTR will never be lower than specified. The strategy will aim to achieve the specified CTR. If the strategy can’t buy conversions within the specified CTR, it won’t buy any c conversions.
Margin¶
Margin is an optional parameter, therefore if you don’t need any margin leave the field empty. If a margin value is specified, the target CPM is automatically recalculated according to margin and the strategy will bid with CPM decreased to cover the margin. This ensures the buying strategy always takes margin into account and complies with target CPM.