In the iGaming marketing world, picking the right pricing model can spell success or failure for a campaign. Among the available options, two stand out: CPA (Cost per Acquisition) and CPM (Cost per Mille – thousand impressions). But which one delivers better returns for marketers? The answer depends on your campaign’s timing and objectives.
What is CPA?
The CPA model means you only pay when a specific action is completed—such as a sign-up, app install or deposit. This ensures you pay only for concrete results, making ROI more measurable.
Pros:
- Cost efficiency: payment only for actual results.
- Conversion-focused: ideal when you’re aiming at clear user actions.
- Transparency: easy to measure performance.
Cons: - Higher initial cost: rates may be elevated given the focus on results.
- Scalability may be more challenging: converting users takes testing and time.
What is CPM?
With CPM, advertisers pay for every thousand views of the ad. The focus here is on visibility and reach rather than immediate actions.
Pros:
- Broad reach: great for brand awareness and presence.
- Lower entry cost: allows experimentation with channels.
- Scale rapidly: quickly get impressions.
Cons: - Less conversion-oriented: viewership doesn’t guarantee action.
- Harder to measure direct ROI impact.
Which to Use for iGaming Campaigns?
Choosing between CPA and CPM comes down to what your marketing goal is. Many experts suggest starting with CPM to build traffic volume, validate channels and gather data. Once you’ve identified effective channels, transitioning to a CPA model becomes safer and more profitable. Jumping into CPA too early, without sufficient data, may result in paying for conversions that don’t materialize or for low-quality traffic.
In short:
- If you’re seeking specific conversions like registrations or deposits, CPA is typically more effective.
- If you aim for brand visibility and broad reach, CPM may be the right choice.
- Often the best route is to combine both, using CPM for reach and CPA for conversion.
Conclusion
There’s no one-size-fits-all formula in iGaming digital marketing. The key is aligning your payment model with your goals, continuously monitoring results and optimizing based on data. With an informed strategy, you’ll make the most of your opportunities and elevate campaign performance.
