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Cost Per Download
What is Cost Per Download?
Cost Per Download (CPD) is a revenue model in which the advertisers only pay when users download their app or a specific file. For example, if CPD is decided at $10 for a particular app and there are 100 downloads, then the advertiser is entitled to pay $1000 to the publisher.
Here’s how to calculate CPD
CPD is calculated by dividing the total cost by the download rate.
CPD = Total cost / Downloads
How does Cost Per Download or CPD work?
With CPI campaigns, advertisers are entitled to pay for app downloads, not ad impressions or engagement. Hence, it is beneficial for advertisers to have lower CPD. On the flip side, publishers always seek to grab higher CPD deals. Cost per download campaigns are also proven to increase conversions and drive more downloads for an app.
Factors affecting CPD
Bidding: Cost per download (CPD) is a revenue model in which the advertisers only pay when users download their app or a specific file. For example, if CPD is decided at $10 for a particular app and there are 100 downloads, then the advertiser is entitled to pay $1000 to the publisher.
Traffic quality: Quality of traffic is a crucial factor in determining CPD, as advertisers want to showcase their ads to audiences who are interested. Hence, publishers must partner with advertisers relevant to their app/website niche.
Ad placements: Where you place ads has a great impact on the CPD. Publishers should always conduct in-depth research to specify top-performing areas on the website/apps where advertisers can place ads and get high viewability.
Cost Per Action
Cost Per Action or CPA is a pricing model in the advertising industry used in performance campaigns. It indicates the cost advertisers pay for every action users complete on a digital advert. An action could be installing, registering, clicking on a link, etc.
Cost Per Click
In the CPC or Cost Per Click model, advertisers pay publishers a certain amount for every click the ad receives. CPC is sometimes referred to as PPC or Pay Per Click.
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