How CPM Targets work
CPM Targets is a powerful tool that helps you maximize revenue by giving you greater control to set price targets for each ad placement. Unlike price floors, CPM Targets aim to deliver the target CPM you want and not just the minimum you are willing to take. We do this by accepting all bids above your target and some bids slightly below in order to deliver your desired CPMs, which ultimately helps maximize your fill rate and yield for every placement.
How to set up CPM Targets
In order to set up CPM Targets for maximum effectiveness, please follow these steps:
Pull a report by placement and country for all of your demand sources for the last 7 days.
Understand the performance that Audience Network can provide. To do this, we need to see the entirety of your traffic for 7 days in order to calibrate delivery models. You can do this with no monetization risk by putting Audience Network at the top of your waterfall with a CPM Target ~10-20% higher than your existing top line item.
After the initial calibration period, we recommend using the Optimize CPM Target page to help guide you in setting your price targets.
Set up country targets for your top countries.
Run the placement for at least 48 hours with your set CPM Target. This ensures we receive enough historical data to accurately calibrate our delivery models.
After seeing your initial results, review the data to identify further ways to potentially improve your fill rate for the placement by using the Optimize CPM Target tool and the sandwich model.
Other key guidelines
You can only use 3 to 5 placements with CPM Targets per format within an ad space.
Once you set your CPM Target, do not update a CPM Target more than once every 48 hours this is so our delivery models have enough data to accurately calibrate to delivery your target price.
Don’t set CPM target of $0.01. If you intend to Accept Any Price then choose “Accept Any Price” where possible. If you want to Accept Any Price for only some country groups for the placement while using CPM Targets for other country groups for the placement, we suggest to use $0 as a proxy for accept all in this case only.
How to Use the Optimize CPM Target tool
To help you better set your price targets, we provide the Optimize CPM Target tool in Monetization Manager. This tool provides a graph of performance for each placement based on actual historical data for the last 7 days. This information can be used as an additional factor in deciding how you position Audience Network in your waterfall and setting your price target.
Using the historical data on the Optimize CPM Target tool, you can better estimate what the respective CPM target should be set to in order to reach the average CPM or fill rate you want.
Note that the Optimize CPM Target tool is available when sufficient impressions are available (i.e. 5k impressions to Audience Network for the last 7 days per placement per country group) to accurately provide projections.
It’s also important to remember that historical data can only provide an estimate of potential past performance. It doesn’t guarantee or in any way indicate future performance.
Optimize CPM Target tool uses historical data to provide more insight for setting your price targets
Best Practices for using the Sandwich model
If you are using CPM Targets you can further optimize by using the sandwich model. The sandwich model gives you the the ability to access Audience Network demand at various points in your waterfall to maximize your monetization opportunities. Follow these steps to set up a a sandwich model for your placements:
Place Audience Network at the top of your waterfall to take full advantage of Facebook demand density. Do not hesitate to set Audience Network with a high CPM Target e.g. ~10-20% higher than your existing top line item.
You can also leverage the Optimize CPM Target page to find the right balance between targeted fill and CPM.
In order to capture more of Facebook’s demand, add a second Audience Network placement in the middle of your waterfall with a target that is ~50% of the top one.
Finally, add an “Accept Any Price” Audience Network placement towards the bottom of your waterfall.
Track performance for each ad position by using a unique naming convention per ad space.
Experiment with the sandwich model in order to maximize revenue. Depending on the size of your CPM distribution, we recommend to have between 3 and 5 price targets (CPM Targets and Accept Any Price) in your placement waterfall.
If you want to pursue more complex monetization strategy requiring more CPM Targets, then implementing real-time bidding might be a better option for you.
Accept Any Price Setting
The Accept Any Price setting allows you to accept all bids from Audience Network. With this setting, we will fill as many requests as possible, which will maximize your revenue. This setting is best when you only work with Audience Network, or for Audience Network placements that are lower in your waterfall. It’s also a good option when you want to minimize waterfall management overhead and seek a light-touch option for your ad monetization.
To set up Accept Any Price as your setting, simply select “Accept Any Price” for your placements on the price setting page. Note that Accept Any Price is the same as $0.
It’s important to note that Accept Any Price and CPM Targets are not mutually exclusive. For a placement, you can choose to use Accept Any Price for some country groups for the placement while using CPM Targets for other country groups