Mobile advertising is complex.Alphabet combinations such as CPC, CPI, and CPM often make developers who are new to advertising real-worlds wonder, and sometimes even confused some seasoned mobile advertisers.

Today, With a simple analysis of facebook's ad patterns to help you distinguish and understand them, you'll be able to clearly identify those ad patterns, which can be beneficial to your mobile app promotion budget.

First, what is CPC, CPI, CPM?

There are many options for buying mobile campaigns that fit our budget. The most basic mobile ad models can be summed up as Pay Per Installation, Pay Per Click, and Pay Per Thousand People. These are just the basic payment models we use to promote our products and companies on mobile platforms.

I'll analyze the strengths and weaknesses of the various promotional models in both positive and both ways so that you can gain a deeper understanding of the best strategies for getting or branding your campaigns.

01. Pay per 1,000 people (CPM)

If you've ever heard the term "pay by impression," you can understand CPM as an advertising model associated with it. CPM is translated directly from "cost-per-mille" in Latin or "cost-per-thousand" in modern English. In a CPM campaign, we pay a negotiated bid for every thousand impressions of an ad on a mobile device. But because CPM pays for impressions rather than clicks and installs, businesses that want to optimize brand awareness through conversions are more likely to opt for this ad-paying model.

02. Pay per click (CPC)

We pay per campaign click. Cpc may not be the most popular campaign model in a campaign because of some obvious factors, after all, on the face of it, we have a better choice: CPI (pay per installation). However, CPC in the detection of user quality and user behavior analysis still has its advantages, which I will mention later.

03. Pay per installation (CPI)

Pay-per-installation (CPI), or it can also be called pay-per-view. This is a popular mobile ad payment model for app developers. CPI is popular because it requires developers to pay users only once each time they download their ad app. With this in in place, CPI campaigns help small and medium-sized businesses use their limited marketing budgets to get the best advertising benefits. However, even if the CPI model sounds good, it still has many problems, which I will mention later.

CPC and CPM modes, on the other hand, do not guarantee that users will install the popular app. Even the CPI model, which sounds good, has its pros and cons. I'll give you a detailed analysis of the pros and cons of these patterns below.

The pros and cons of CPI, CPC, and CPM

While it's easier said than "performance-focused advertisers should use the CPI model and brand advertisers should use the CPM model," it's not necessarily accurate. In fact, each type of mobile advertising model has its advantages and disadvantages, and I'll help you categories them.

The benefits of a pay-per-installation model

The most obvious benefits of using CPI campaigns are in cost. However, when you look at bidding, CPI is generally higher than CPC and CPM, but the average cost per installation will cost the entire campaign less than CPC and CPM. Because developers spend only on installs per user, this minimizes the risk of developers overspending on traffic that is not translated into installations. As a result, many developers choose this advertising model.

The disadvantages of a pay-per-installation model

Limited control over traffic - While you'll save some money and you'll get some money from your spending, advertisers will find it difficult to control the quality of their display traffic when using opaque ad networks. At the same time, this is also because mobile advertising networks have the drive to encourage a large number of installations, and don't forget that they also deduct commissions from the revenue from each installation, many network platforms have picked up a lot of cheap, and low-quality traffic to the CPI. However, AppFlood not only emphasizes its own transparency, but also empowers us with tools that can easily turn off low-quality traffic.

Tracking user behavior is limited - as ad networks emphasize increasing the number of downloads at the expense of user quality. Only when we get a quality analysis of the long-term value of our users (after the campaign ends) can they effectively analyze the quality of the people we get. Because CPI campaigns can only identify information based on the type of user who has downloaded the app, this model is not helpful in finding out why people click on ads. Unfortunately, most high-quality mobile ad networks are less interested in metrics such as time consumption, bounce rate, browser, and other types of display behavior.

The benefits of paying per click

This may surprise you, but the CPC model works better than the CPI model in terms of getting users when comparing effects. Of course, only if your company can afford the high cost of a CPC campaign.

The CPC model is more insightive than the CPI model - data-oriented is more likely to use the CPC model and prefers to observe why users click or not click on ads in this mode. Of course, to track this type of data, you either have a strong internal team, an example that is common in big data-based companies like Amazon; you hire an agent who can run six to seven figures. Or, as you analyze your own data and adjust your target audience, you have to work closely with a third-party data analytics company. Despite the cost, what you find in your data can provide valuable insight into those who point or don't click on your ad. This data is based on detailed information such as browser type, language, IP address, user access time, and other metrics.

The CPC model is more affordable than the CPI model - in fact, because in a CPC model campaign, you or an agent you hire want to maximize conversions and get a return, you spend a lot of time optimizing their ad content to try to increase conversion rates. If you get the right optimization, it's an effective and cheap model for advertisers based on every user acquisition. However, SMEs often have neither the resources nor the manpower to invest in campaign optimization.

Disadvantages of paying per click

While there is a lot of good forward-looking data, the advantages of the CPC model also constitute its disadvantages. Advertisers who don't have the resources to maximize clicks into conversions by analyzing clicks and optimizing ad content typically spend more on CPC-mode campaigns than CPI-modeled campaigns. As a result, many studios with limited resources choose the CPI model.

The advantage of paying per thousand people

Because it is popular with most brand advertisers, the CPM model has traditionally been defined as a branded ad payment model, regardless of the campaign that is displayed on a web page, TV, or mobile phone. For most forms, it's no different.

CPM, Rich Media and Video Go Hand in Hand - If a mobile advertising site offers CPM, you'll find that these sites also offer rich media and video. Just as AppFood offers CPM, it also provides rich media and video. Why is that? This is because rich media ads are more flexible than traditional banner or panel ads and mobile ad list models. At the same time, animation, video, and dynamic interactive advertising bring a higher level of visual contact to the viewer.

Control of mobile advertising content - CPC model applies to brand advertising and CPI applies to developers is the same. But for traditional brands with a primary focus on brand awareness and performance, this may seem like an afterthought. Even when working with agents, they maintain maximum control over their advertising content in an effort to maximize brand impact.

Customized event and behavior data - Using CPM mode is more accurate than using other mobile payment modes and ad formats, and the data obtained from rich media customization in addition to clicks is more accurate. Because we pay more attention to maximizing brand awareness of display than we do to their site visits, the CPM model is naturally the best payment model for this campaign. For example, by taking advantage of the interactivity of rich media ads, a brand's mobile ads may ask visitors to choose their favorite soda flavor, and soda advertisers use the data reflected in the ads to analyze how much users like their beverage tastes.

The disadvantage of paying per thousand people

The most obvious flaw is that CPM is not an ad format based on good or bad performance, and developers and branded ads that use this form of advertising to acquire mobile users will cost more than campaigns in the CPC or CPI model. In addition, CPM mode has another flaw that we need to beware of.

It's important to note that due to the nature of the CPM campaign itself, you're actually paying for your impressions, and the ad site may offer you low-quality impressions or fill rates. For example, an ad site might consider showing your ad in another pop-up banner and disappear quickly after a second or two of display, or your ad content simply won't load. If that's the case, you probably won't be able to maximize the impact of mobile ad content no matter how much you spend on it.

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