Convert from Cpm to Cpa Campaigns with Aedgency

Hi! My name is Sven Hezel and I’m the Head of Media Buy at Aedgency. In this month’s tip I would like to share some of my methods on how to successfully run campaigns, and how to migrate them to a CPA payment model. As you know, you can always track the clickthrough rate and the conversion rate of all your campaigns. This also means that you’d be able to migrate your campaigns to a CPA model, which is exactly what we offer at Aedgency. Now, my experience as a Media Buyer is that not every partner can or wants to work on a CPA payment model. Some of them work on a CPM, and others work on a CPC model. Here you don’t pay for conversions. And hence it can be difficult to maintain a good ROI. So here are my tips to minimise the risk and move your campaigns to a CPA model. Number one: set your budget and run the clearly defined end dates. I typically suggest something between 1500 and 3000 euros. Therefore once you’ve ended the campaign, you’ll see what the real performance of these placements are and if you want to continue or not. Second: do your maths. Since you know these clickthrough rates of your partner, you can calculate the expected ROI of the placement. For an example, if your partner offers you a 2 euro CPM and expected half a percent clickthrough rate, and you expected 2 percent conversion rate, you can calculate easily that the eCPA for this placement will be 20 euros. Likewise, if you have 40 cents CPC and also expect a 2 percent conversion rate, you’ll also end up at an eCPA of 20 euros. Third: You should optimise. Heavily optimise all of your campaigns. This can be done by better targeting, test new banners, test new landing pages, also test new placements. And please don’t forget to stop products and placements that do not perform. Once you have done all that, you’ll be in a very good position and you’ll be able to demand, from your partner, to move the campaign to a CPA payment model. If you follow these steps you’ll see that you’ll drive more traffic to your website, you will increase the conversion rate, you will increase the return on investment for your campaigns, and you’ll have a lot easier time to move it to a CPA payment model. This is how I avoid risk at Aedgency, and how I focus on new campaigns, save time, and increase the return on investment in general. I hope these tips will also work for you. Thank you very much.