This case study is based on more generic targeting so it wouldn’t apply to your niche campaigns. He doesn’t take into the account the CPM & Quality Relationship but this is a cool study nonetheless. The take home point is to split test your CPM’s to find an ideal CPM for your ads and ROI.
How does this affect your POF strategy?
– Looks like a good testing CPM is between $0.32-$0.52
– Upgrade your winning campaigns to $0.62-$0.72
– If there is a lot of room in your ROI, skydive and increase CPM’s to $1.01+ (this will more often than not involve winning ads, winning landing page and non-street pay from the networks).
Keep in mind conversions will go up as your CPM goes up. Markus said it months before where the top bidders will experience 5x the conversions than will someone at mid range.