For those who work with iGaming ads, choosing the right pricing strategy can define the success or failure of a campaign. Among the various options, two stand out: CPA (Cost per Acquisition) and CPM (Cost per Thousand Impressions).
But which one offers the best return for iGaming marketers? It’s not just about what the best strategy is, but about identifying the most viable one for each moment.
Adsterra experts recommend starting any iGaming campaign on the platform with CPM and then adjusting your results using the exclusive CPA Goal tool. Soon, we will explain how this tool optimizes your iGaming campaigns.
If you don’t already run iGaming campaigns or monetize your traffic with Adsterra, sign up now and join more than 50 thousand partners around the world.
What is CPA?
CPA is a payment model based on the specific actions users take after interacting with an ad. These actions can range from a simple registration to a complete purchase, depending on the campaign objectives.
The great 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:
- Cost-effectiveness: You only pay for concrete results, which can be more cost-effective in the long run.
- Focus on conversions: Ideal for campaigns that seek to maximize conversions, such as registrations or sales.
- Transparency: Easy to measure campaign performance as each action is tracked and accounted for.
Drawbacks of CPA:
- Upfront cost: CPA rates can be higher than other models due to the focus on tangible results.
- Volume: It can be difficult to scale quickly as conversions depend on user behavior.
What is CPM?
In this model, advertisers pay for every thousand views of the ad. This strategy is widely used for branding and brand awareness campaigns, where the objective is to reach as many people as possible.
Advantages of CPM:
- Reach: Excellent for increasing brand visibility and recognition, reaching a wide audience.
- Low initial cost: Allows for greater experimentation due to lower initial cost.
- Scalability: Easy to scale and adjust quickly, reaching a large number of users.
Drawbacks of CPM
- Less focus on conversions: Payment is based on views, with no guarantee that they translate into actions or sales.
- Difficulty of 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 campaigns with CPM.
This strategy helps ensure a steady volume of traffic, which is crucial for testing a campaign. With it, you can spend less and still reach multiple relevant traffic sources.
Opting for CPA from the beginning can increase risks as you won’t know how your traffic will react. If users are slow to make deposits or there are issues with postback, you may lose traffic due to campaign “inefficiency.”
However, CPA at Adsterra is effective in two situations:
- When you’re looking for quick and simple conversions like opt-ins, app installs, and signups.
- When you purchase CPM or CPC traffic and optimize it for conversions through CPA Goal.
How does Adsterra’s CPA Goal work?
If you want to know more about this global ad network and how to use it 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. You create a rule and Adsterra’s intelligent algorithm does the rest.
First, a predicted spending amount is defined. When this value is reached, the algorithm checks whether all channels comply with the following parameters:
- Conversions
- eCPA (average cost per conversion)
For example: if the spend exceeds US$100 and the value per conversion is greater than US$10, the positioning is turned off. This way, you don’t have to turn off each placement manually; Adsterra’s algorithm does this automatically. Practical, isn’t it?
To test CPA Goal, sign up to the platform by clicking here.
In short
In iGaming digital marketing, there is no one-size-fits-all solution. CPA and CPM offer distinct advantages and can be effective depending on the campaign context.
If the focus is on generating specific conversions, such as signups or deposits, CPA is often the best option, ensuring your budget is spent efficiently, paying only for concrete results.
On the other hand, if the objective is to increase brand visibility and reach as many potential players as possible, CPM can be more effective, allowing broad and fast coverage, ideal for branding and recognition campaigns.
The key is to understand your marketing goals and choose the strategy that best aligns with them. Integrating both methods 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 that digital marketing offers to the iGaming sector.
