Programmatic Ad CPM Rates: 2020 Edition

It is not easy to effectively capture the users’ attention in the digital ecosystem; hence, Programmatic Advertising comes to the rescue. Millions of websites, apps, and other digital properties are available and are being viewed each day. It is important and highly tiring to use different platforms and selecting the best places to put these ads in the digital space. The automated solution purchasing and selling of the online advertising is Programmatic advertising. This makes transactions both easier and effective to streamline the process and put the entire digital advertising efforts into one technology platform. The platforms have been growing their inventory and database so that any format and channel can be accessed in a programmatic way that includes mobile, desktop, tablet, audio, digital outdoor, and more. With the purpose of segment audiences, the targeting tactics are used with data to make sure that advertisers only pay for the ads delivered to the right audience at the right time and the “spray and pray” method of digital advertising is less dependent on. The developments and algorithms make ad buying, placement, optimization process more efficient and eliminate mundane activities and time on the market. In this article, you will see the CPM rates offered for Programmatic Advertising across different segments.

Programmatic Ad CPM Rates by Country 2020

Here, you can see that we have segmented the CPM rates you can get from programmatic ads by country.

Programmatic Ad CPM Rates in India 2020

Given that India is not precisely the most idealistic country for traffic, it is pretty evident that they do not have the best CPM rates to offer. However, they offer a CPM rate that can go from over 50 cents to 1 USD, which is pretty good compared to what is being provided to other countries around Asia.

Programmatic Ad CPM Rates in the US

For tier 1 countries, the CPM rates are phenomenal. They receive the best of the lot, and you see exceptional revenues from CPM at the end of each month if you have a good amount of traffic from the tier one countries, especially the USA. The CPM rate they get for Programmatic Ads is pretty good. It can be anywhere from USD 3 to USD 6, depending on a variety of factors.

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Programmatic Ad CPM Rates in the UK

The UK is another country you want decent traffic from if you wish to see good CPM revenues. One of the easiest ways to increase revenue is to target an audience in these countries and find out the prevalent niches here. For the UK again, the CPM rates are pretty good and can be in the range of USD 2 to 4.

Programmatic Ad CPM Rates in Indonesia

As you must have noticed, countries around Asia and the Pacific region do not get the most inexplicable CPM rates, and they are usually on the lower side. Even though countries like Indonesia and India get the better of the lot, it is not great. The CPM rate for Programmatic ads for traffic from Indonesia is in the range of 10 cents to 50 cents/

Programmatic Direct CPM Rates

If you use programmatic direct, you can make sure that the transaction for the ad or the agreement can take place directly between the advertiser and the publisher via some ad-buying system. They can contain different types of auction deals like preferred deals or programmatic guaranteed or non-guaranteed deals. They ensure that the premium space is filled, which would bring higher yields compared to the open market. It gives the publisher a better understanding of the inventory type and audience that the advertiser wishes for and hence, would have better control and insight. It is a more transparent system that would help the publishers largely.

Programmatic Guaranteed CPM Rates

These are essentially deals where the buyer directly purchases the inventory from the publisher. There is an understanding where the buyer agrees to buy a particular number of impressions, which the publisher ensures a guaranteed price. It was recently reported that over 58% of all display advertising use programmatic guaranteed deals, and it is estimated for a market of over 27 billion USD in the USA alone. The guaranteed deals will help you increase your revenue and access premium advertisers who look for high ad inventory volumes and pay a premium price. It brings security for your business too.

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Preferred Deals CPM Rates

This is another kind of an agreement between the buyer and the publisher to give preferential access to the publisher’s inventory prior to its auction in the open market. The access is provided in exchange for a fixed CPM. So, essentially, you are only providing an opportunity to a select advertiser to purchase your inventory, but it is not confirmed that they would buy it. It would bring you a fixed CPM from the buyer and a premium price. You would not be dependent on only one buyer, and you can always put it on the open market.

How to Increase Programmatic Ad CPM Rates?

You must have understood that there are many players on both the demand and the supply side. The programmatic revenue that the publisher receives is half and sometimes even lower than what the advertisers spend. In situations like Trading Desk, SSP, or Exchange, where there are three or four intermediates, each one takes a revenue cut of 20% each, and the publisher is left with only 40% of what the advertiser spends. You would see the publisher getting only 30% of what the advertiser spends pretty regularly. The adtech ecosystem makes it easier for intermediaries to receive better, and the gap is expected to reduce as private marketplaces become the norm.

Increasing CPM rates is a challenge, especially for the content if purchased at a network level, which means that many ad networks and exchanges are buying traffic consistently. In addition, each exchange has its algorithm for the purchase. This makes it challenging to increase CPMs, but there are some things you can do:

  • Make sure your page has a high loading speed
  • Ad slots in optimized numbers
  • Keep ads highly visible and monitor ad zones for viewability
  • Make sure that the ads refresh automatically and high competition for DFP
  • Use exchange bidding and DFP First look
  • Use header bidding solution for better revenue
  • Optimize keywords in the content for high bid rates

High CPM Niches for Programmatic Advertising

The CPMs are primarily dependent on the niche of the website. For niches like insurance and finance, you will get the highest CPMs of around USD 5 to USD 8. In general, the rates offered on programmatic ads are 50% higher than what you get out of traditional banner ads, and you can get similar results if you use header bidding solutions. If you want better revenues from programmatic ads, you could set up your bidder and work with technology partners for better returns.

Also Read  Programmatic Ad CPM Rates: 2020-2021

Wrap up

You must have walked through the entire process of programmatic advertising and how you make it better by now. Programmatic advertising has several benefits, like it is suitable for your budget, and machine learning makes it efficient to optimize campaign success and not have ineffective inventory. In addition, you have streamlined campaign management, better targeting and can easily access ad inventories. This makes it an effective solution for marketers to effectively reach the most influential audiences and cater to better results. I hope this helps.

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