6 Media Buying Models in Digital Marketing

Navigating media buying in digital marketing can feel a bit like picking the perfect streaming service. You’ve got options, but which one’s the best fit? Each model has its perks, and finding the right one depends on your budget, goals, and who you’re trying to reach. Just like figuring out whether you’re more of a Netflix or Hulu person, understanding what you’re paying for can help you get the most out of your investment. 

In this blog, we’ll walk you through six media buying models, so you can pick the one that works best for your business.

What is Media Buying?

As “media buying” implies, it involves purchasing media to achieve greater visibility. This can help promote products or enhance brand awareness through targeted media exposure. Before exploring the intricacies of media buying, it’s important to understand its fundamental models.

To assist both beginners and seasoned professionals, we will discuss six different media buying models commonly encountered in the mobile marketing landscape.

Common Media Buying Models

CPI – Cost Per Install

In mobile app marketing, CPI (Cost Per Install) is a model where advertisers pay for each app installation. While many marketers prefer CPI for its ability to rapidly boost installs, the quality of these installs can vary widely among vendors. Some reputable CPI providers focus on attracting engaged users, while others offer incentives, like free in-game currency, leading to lower-quality installs. Additionally, some dishonest companies may use bots to artificially inflate install numbers.

Importance: Helps measure the effectiveness of app promotion campaigns and optimize user acquisition strategies.

CPM – Cost Per Mile

CPM, or Cost Per Mille (with “M” representing 1,000 in Roman numerals), is a popular method for purchasing digital media. Advertisers pay for each time their ad is displayed on a webpage or within an app. While this model is straightforward, it faces criticism because advertisers are charged for impressions regardless of whether consumers view the ad. For example, if an ad has a CPM of $12, the cost per impression would be $0.12, even if the ad is positioned out of sight. To help you understand the true value of CPM for your campaigns, try out our CPM Calculator to see how much you’d be paying per thousand impressions. 

Importance: Helps in assessing the cost-effectiveness of ad placements and maximizing visibility.

CPC – Cost Per Click 

CPC, or Cost-Per-Click advertising, means that advertisers pay each time someone clicks on their ad. Many advertisers prefer this model over CPM because they feel it ensures they only pay when someone shows genuine interest in their message. While CPC campaigns can be effective and easy to set up, there is a risk of fraud if companies use bots or other methods to generate clicks that are not made by real users.

Importance: Enables advertisers to measure direct engagement and optimize for clicks.

CPL – Cost Per Lead 

CPL, or Cost Per Lead, refers to the model where advertisers pay each time a lead form is completed and submitted. This approach is prevalent in B2B marketing, as immediate purchases are less common. While CPL can be an effective way to acquire leads, there is a risk of fraud if bots are used to automatically fill out lead forms.

Importance: Aligns spending to collect valuable customer information.

CPA – Cost Per Acquisition  

Cost Per Acquisition (CPA) is a digital marketing model in which advertisers pay for a specific action taken by a user, such as making a purchase, signing up for a newsletter, or downloading an app. Unlike other models that focus on impressions or clicks, CPA emphasizes the actual conversion, making it a highly effective approach for performance-driven campaigns.

Importance: Provides a clear measure of ROI, allowing for strategic budget allocation.

CPS – Cost Per Sale 

Cost Per Sale (CPS) is a digital marketing model in which advertisers pay a commission or fee for each sale generated through their advertising efforts. This model is commonly used in affiliate marketing, where affiliates promote products or services on behalf of a business and earn a commission for every sale they facilitate.

Importance: Minimizes risk by ensuring payment is only made for actual sales, aligning marketing costs with revenue.

Which Model Should You Choose?

The best model to choose for your marketing campaign depends on your specific objectives, target audience, and what your media partners can offer. While there isn’t a one-size-fits-all answer, the ideal model should attract high-quality users, encourage engagement, and help retain existing customers. For instance, app owners may find the CPI model most effective, while those in ed-tech or recruitment might benefit more from the CPL model.

Summary

Media buying and planning are vital components of paid marketing strategies, focusing on purchasing ad space to effectively reach target audiences at the right time and cost. Tracking campaign outcomes is crucial for measuring success.

At SW Marketing and Consulting, we emphasize the importance of these strategies in achieving successful marketing results. If you have questions or need some sort of advice for your business, feel free to reach out to us today.