Whoever runs iGaming ads knows that choosing the right pricing strategy can make the difference between the success and failure of a campaign. Among the various options available, two approaches stand out: CPA (Cost per Acquisition) and CPM (Cost per Thousand Impressions).
But which one offers the best return for iGaming marketing professionals? It's clear that it's not just a matter of which strategy is better, but rather knowing which one is the most viable at any given moment.
At Adsterra, we recommend starting any iGaming campaign with CPM and then adjusting your results using the exclusive CPA Goal tool. We will soon show you how this tool optimizes your iGaming campaign.
By the way, if you are not yet running iGaming campaigns or monetizing your traffic with Adsterra, sign up now and join over 50,000 Adsterra partners worldwide.
What is CPA?
This is a payment model based on specific actions that users take after interacting with an ad. These actions can range from a simple registration to a complete purchase, depending on the campaign goals.
The big attraction of CPA is that you only pay when the desired action is completed, ensuring a more tangible ROI (Return on Investment).
Advantages of CPA:
1. Cost-effectiveness: You only pay for concrete results, which can be much more economical in the long run.
2. Focus on conversions: This strategy is ideal for campaigns that seek to maximize conversions, such as registrations or sales.
3. Transparency: It is easy to measure campaign performance, as each action is tracked and accounted for.
Disadvantages of CPA:
1. Initial cost: CPA rates can be higher than other models due to their focus on tangible results.
2. Volume: It can be difficult to scale quickly since conversions depend on user behavior.
What is CPM?
In this ad pricing model, advertisers pay for every thousand views of their ad. This strategy is widely used for branding and awareness campaigns, where the main goal is to reach as many people as possible.
Advantages of CPM:
1. Reach: Excellent for increasing brand visibility and recognition, reaching a broad audience.
2. Low initial cost: CPM campaigns typically have a lower initial cost, allowing for greater experimentation.
3. Scalability: Easy to scale and adjust quickly, reaching a large number of users.
Disadvantages of CPM:
1. Less focus on conversions: Since payment is based on views, there is no guarantee that these impressions will translate into actions or sales.
2. Difficulty in measurement: Measuring the direct impact on ROI can be more complex, as the focus is not on specific actions.
CPA or CPM: Which to Choose for iGaming Ads?
The choice between CPA and CPM mainly depends on the objectives of your iGaming campaign. Adsterra experts always recommend starting your iGaming campaigns on Adsterra with CPM.
This strategy helps ensure a constant volume of traffic, which is crucial for testing a campaign. With it, you can spend less and still reach various relevant traffic sources.
If you opt for CPA right from the start, you may end up taking more risks because you won't know how the traffic will react. If users take a long time to make deposits or if there are postback issues, you may lose traffic volume due to the campaign's "inefficiency."
However, CPA at Adsterra stands out in two situations:
1. When you seek quick and simple conversions, such as opt-ins, app installs, and sign-ups;
2. When you acquire CPM or CPC traffic and optimize it for conversions through the CPA Goal.
How does Adsterra's CPA Goal work?
If you want to learn more about this global ad network and how you can use this platform to increase your digital earnings, follow Adsterra on Instagram and join the Official WhatsApp Channel.
CPA Goal allows you to buy CPM or CPC traffic and optimize it based on two criteria: the average cost per conversion and the number of conversions. How does this work? You create a rule, and Adsterra's intelligent algorithm takes care of the rest.
First, you set a projected spend value. When this value is reached, Adsterra's algorithm checks if all channels are in accordance with the following essential parameters:
* Conversions
* eCPA (average cost per conversion)
For example, if the spend exceeds US$100 and the effective cost per conversion is greater than (>) US$10.00, the placement is turned off.
This way, you don't need to manually enter your campaign and turn off each placement, because you set a rule, and Adsterra's intelligent algorithm will do this automatically for you. Convenient, isn't it?
To test CPA Goal, simply sign up for the platform by clicking here.
Summary
In digital marketing for iGaming, there is no one-size-fits-all solution. CPA and CPM offer distinct advantages and can be effective depending on the campaign context.
If your focus is on generating specific conversions, such as registrations or deposits, CPA is generally the best option. It ensures that your budget is spent efficiently, paying only for concrete results.
On the other hand, if the goal is to increase brand visibility and reach as many potential players as possible, CPM might be more effective. It allows for broad and quick coverage, ideal for branding and awareness campaigns.
The key is to understand your marketing objectives and choose the strategy that best aligns with them. Integrating both methods into your marketing strategy can be a powerful approach, combining reach and conversion to maximize your results.
Regardless of the choice, continuous optimization and performance analysis are crucial to ensuring the success of your iGaming campaigns. With a strategic and well-informed approach, you can make the most of the opportunities digital marketing offers for the iGaming sector.
Source: Adsterra
