Marketing calculations

[sinon]

Hi,

could someone explain "CPM" and budget to me?

1. My text ad says it's got a CPM of 6.20. To me that sound like I'd have to sell ads at a rate of at least 6.21 to make profit. Yet all offers are between 0.40 and 2.50. How am I supposed to make profit from this?
   
2. How does the marketing budget calculate into this? It starts at 1000, yet I don't see any changes setting it to 500.
   
3. And last: I can only start surveys after reaching 10% of the max possible audience which is 1.5 billion in my current game. So inshallah my first survey starts in 20 years?

[Dave the Helldiver]

CPM means "cost per thousand" the M is actually the roman numeral, not "minute" as some people may initially think.

There's two places CPM is showing up after the new update. Both in how you market your app (specifically its feature) and who you sell ad space to.

In the case of marketing your app, you get to set the daily budget. So YOU buying a text ad at a CPM of 6.20 means that if your daily budget is $6.20 you'll reach 1,000 people. Set to $620, you'll reach 100,000, set to $6200 you'll reach 1M, so on and so forth. Note the conversion rate, so that % is the amount of people you'll bring to your app. So a daily text ad budget of $6200 will reach 1M people, but only convert 10% of them to register with your app. So you would expect to bring on about 100,000 people of that 1M. As of right now, I'm unsure where the 275B number is coming from. Facebook in real life is estimated have about 2 billion active users, there are only so many people on the planet, so I'm unsure what that means exactly. Startup Company Universre traffic overall? certainly not unique visitors.

On the sales side of your app, you are selling at a rate of CPM. The profit you get is entirely based on your user growth. As an example, I have an app which has 1.03B registered users. I'm currently selling to Vlogstop today at a CPM of $6.50. I've generated 1.7B impressions, divided by 1000 x $6.50 that's a total DAILY revenue of $11.2M. Tomorrow I've got uberbuy scheduled for banner ads at $3.60 so I'll be somewhere around $5.6M.

Given that revenue I can run several million dollars a day in a marketing budget to generate more traffic and grow my app! I was running $3 million in banner ads daily, which resulted in a lot of daily impressions at a conversion rate of 17% which came out to about 70M people users per day (by my math). I'm only at 13% to unlock the survey and I'm sort of unclear what it actually did for me.

[jhovgaard]

Originally posted by Kiri....:

I'm unsure where the 275B number is coming from. Facebook in real life is estimated have about 2 billion active users, there are only so many people on the planet, so I'm unsure what that means exactly. Startup Company Universre traffic overall? certainly not unique visitors.

We found aliens or a bug. I'll look into both scenarios. Thanks :-)

[Panda Arcoiris]

Easy, it's a rule of 3 (CPM = cost per thousand):

CPM - Impressions - Money
4.10 - 1 000 - 4.10$
4.10 - 850 000 - 3 485$

An easier way to understand this, divide impressions by 1000 and then multiply the CPM:

4.10 * 1 = 4.10$
4.10 * 850 = 3 485$

Hope this help to next people looking for this question.
Regards