Programmatic Ad CPM Rates: 2021 Edition

It is not easy to effectively capture the attention of the users in the digital ecosystem, hence, Programmatic Advertising comes to rescue. Millions of websites, apps and other digital properties are available and are being viewed each day. It is important and extremely 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 in a manner that any format and channel can be accessed in a programmatic manner which includes mobile, desktop, tablet, audio, digital outdoor and more. With the purpose to 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 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 exactly the most idealistic country for traffic, it is pretty obvious 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 in comparison to what is offered 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.

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 niches that are prevalent 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 really 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 in comparison with 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 which would help the publishers largely.

Programmatic Guaranteed CPM Rates

These are essentially deals where the buyer directly purchases the inventory directly from the publisher. There is an understanding where the buyer agrees to purchase a particular number of impressions, which the publisher ensures for 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 get access to premium advertisers who look for high ad inventory volumes and pay a premium price. It brings security for your business too.

Preferred Deals CPM Rates

This is another kind of an agreement between the buyer and the publisher to give preferential access to the inventory of the publisher 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 for purchase of 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 is a huge number of players on both the demand and the supply side, because of which the programmatic revenue that the publisher receives is the half and sometimes even lower of 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 it has been purchased at a network level, which means that a lot of ad networks and exchanges are buying traffic consistently, and each exchange has their own algorithm for the purchase. This makes it difficult to increase CPMs but there are somethings 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 largely 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 own bidder and work with technology partners for better returns.

Wrap up

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

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