ID 21. Maximize margin with CPM limit, target CTR and impression cap

This strategy will buy a target volume of impressions, aim to achieve the specified target CTR, and optimise CPM to maximise margin. The strategy is recommended if you want to buy a specific volume of impressions, while maximizing the margin. It is usually used to reach the target volume of audience while maximizing user interactions with the creatives and driving site visits.

Brief Overview

Budget Factor

Description

Payment Model

Pay for impressions

Primarily Goal

Buy target volume of impressions with specified CTR without exceeding the impression cap, then maximize margin

Use Case

Reach Audience and Drive site visits

Budget Pacing

Evenly

Budget Types

Lifetime

Recommendations

If the settings are too strict the strategy will buy all available traffic, but it may not be enough to spend the allocated budget and achieve the volume goals. The possible causes of this may be:

  • Low CPMs targeting premium supply sources, e.g. domains, app bundles, SSPs

  • Low CPMs and high margin volume.

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.

Impressions Cap

This strategy will only buy the target number of impressions, then stop trading completely.

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 be equal or lower than specified.

CTR

The CTR in this strategy is a goal for the optimization engine, i.e. the strategy will aim to achieve the specified CTR. If there is not enough inventory to achieve the specified CTR, the strategy will buy traffic with the maximum available CTR. If the CTR is not achievable according to line item targetings and settings, the strategy will buy inventory that may not achieve the CTR goal.

Margin

Unlike other margin maximizing strategies, margin is a required parameter. The primary goal is buying the target volume of impressions without exceeding the cap while keeping margin above the target value.