vCPM vs. CPC: Caution in Revenue Evaluation
Did you know that view-attributed revenue in vCPM (cost per 1.000 viewable impressions) campaigns can often paint a misleading picture of performance?
In the example below, in one of our customer accounts one single Sponsored Display campaign drove ~20% of total ad sales in H1 2024.
Impressive, right? But here’s the catch:
Only 14% of that revenue came from clicks.
The remaining revenue was view-attributed, meaning it’s not clear if users actively engaged with the ad or if they were even influenced by it.
Why is this problematic?
This leads to inflated ROAS figures for vCPM campaigns, while undervaluing the impact of direct response campaigns.
Takeaway:
Be cautious when evaluating vCPM performance. Consider click attribution, A/B testing with control groups, and complementary KPIs to ensure impact of your ad strategy