Last year, Galaksion introduced two brand-new pricing models.
Both Smart CPM and Smart CPA automate the bidding process and help you win high-quality traffic at a more reasonable price. Sounds quite profit-promising, right?
But here’s the catch: you can only pick one when launching your ad campaign.
Each one has its advantages and serves different goals. Mastering both, though… Talk about potential for profit almost right upon launch.
In this article, we’ll break down these models side by side so you know exactly which one best fits your next ad campaign.
Because when done right, Smart CPM and Smart CPA can do wonders for your ROI.
Quick comparison chart
Here’s a brief breakdown of each model’s characteristics.
If you still have questions and want to dive deeper, let’s talk details.
Everything you need to know about Smart CPM & Smart CPA
- Second-price auction logic
Imagine you and other advertisers are fighting for the same slice of traffic.
Here’s how the sCPM / sCPA algorithm works:
You set the max rate you’re willing to pay.
The system analyzes your competitors. 
The system automatically adjusts the rate to your advantage.
You win the auction.
You don’t pay your full bid → you pay the next competitor’s price + a small step. 
Overbidding is out of the question. You will pay less in most cases. - What you’ll be billed for
Smart CPM → pure impression model.
Smart CPA → impression model tied to conversions.
With Smart CPA, a traditional CPA model transforms into a dynamic CPM auction.
Rather than paying a fixed fee for actions taken, you pay for impressions recalculated through conversions. The price is determined through the aforementioned second-price auction mechanism and is optimized through your campaign’s effective CPM (eCPM).
So the cost is still based on results: how well your campaign converts. In this case, impressions will most likely be cheaper than classic CPA.
- How sCPM and sCPA can help you profit
With Smart CPM, traffic may cost 2× less than standard CPM.
With Smart CPA, conversions may be priced up to 40% lower than standard CPA.
You will get a more affordable deal while winning premium slices and placements + achieving maximum conversions. Both of these models act for your benefit, and you will never pay more than you intended.
- Situations where you should pick one over the other
Smart CPM:
— works better in GEOs with lower competition
— best for testing and the beginning stages of your campaign
— a better fit for verticals such as E-commerce, Streaming/VOD, iGaming and client-based Games
— if your conversion is high-value and the user journey is longer or more complex, Smart CPM is ideal. Pay for impressions while optimizing toward our smart algorithm of sCPM!
Smart CPA:
— suits higher-demand GEOs as a conversions-based model
— uses a test budget
— a better fit for verticals such as VPN, Utility, Antivirus, and casual Games
— if your conversion flow is simple (sign-up, install, download, subscription) and low-cost, choose sCPA to pay only for completed conversions and keep your costs predictable.
Now we can dive into further optimization.
How to make the most out of Smart CPM and Smart CPA?
General recommendations for both business models:
To improve your chances of getting the top slices, increase your max bid (СPM rates for sCPM and conversion rates for sCPA).You will never pay more, only less. These pricing models protect you from overbidding.
Follow the numbers on your Traffic Volumes chart when adjusting your rates. This way, you can pick the best option for your bundle.For Smart CPM,
Try increasing your maximum bid if you are targeting competitive GEOs and see lower traffic volumes. It may help you find the right level and move up in the ranking.In case that’s still not enough, launch a parallel campaign on regular CPM and analyze performance to pick the most suitable approach.
For Smart CPA,
Split your campaigns for each traffic slice. For example, desktop vs. mobile, Wi-Fi vs. 3G, etc. You will reach a more fitting audience from the get-go and spend less on testing. Let the system learn first. Early results may show a higher CPA, and that’s pretty normal. Once more conversions come in, the costs will readjust and go back to your goal.For more insights, reach out to your manager on the platform. Our experts will answer all your questions, provide optimization tips specific to your offer, and help you maximize the benefits.
Success stories to motivate you
Some of our partners have already profited from using Smart CPM and Smart CPA.
We’ll share their results so you have a better idea of how these price models work in practice.
Smart CPM
Case: doubled traffic volumes for Chile
CL is a less competitive GEO, so in this situation Smart CPM had an opportunity to perform especially well.
One advertiser set his maximum rate at $1.5, but with sCPM he paid only $0.7. Double traffic volume for the same price! With fewer competitors, he had a huge savings potential.
Smart CPA
Case: 11% more profit with a higher bid
One of our advertisers was promoting an Antivirus offer in the US. A great fit for Smart CPA: an easier conversion flow and a popular GEO.
He ran two parallel campaigns on Smart CPA. Let’s compare how different bids affected his earnings.
A campaign with a lower bid got 33% more impressions, but the one with a higher bid generated 11% more profit.
Meaning: in his case, a better quality slice was more advantageous than the higher number of impressions. sCPA was the right choice, and our partner was wise to split his campaigns and test the bid hypothesis.
Of course, these are just some examples of sCPA & sCPM in action. Your results will depend on your slice, auction, and offer at the moment. We recommend you additionally strategize with your manager.
Want to make it in our hall of fame with your Smart campaigns?
Register on Galaksion and secure top-quality traffic on a better deal!
P.S. Don't forget to use the promo code WJUNCTION15 and get your +15% bonus on your first top-up!