Toutiao’s information flow ads do not support oCPC. What is the motivation behind this?

I wrote an article about Toutiao before, which was a bit sensational, but everyone knows that I always stick to the facts and the motives behind them are not what I want to discuss. So, since everyone is concerned about this topic and is more inclined towards technical exchanges, I think this topic is still worth writing about.

The best result is that Principle 1 and Principle 2 can be achieved at the same time. In this way, the interests of the media and advertisers are aligned, and it is a win-win situation.

First, let’s take a look at what determines eCPM in the case of “oCPX”:

eCPM = CPA*pC VR *p CTR *1000

You can see from this formula that the media’s final revenue is related to the target conversion cost you set, the product and creative level of your advertisement (affecting pCTR), and your conversion ability (affecting pCVR).

However, there seems to be no direct relationship with CPM and CPC.

But why do you feel the effect has deteriorated? There could be several reasons:

1. The impact of changes in competitive relations. After the change to oCPM, do other advertisers have a different understanding of oCPM and think that they should increase bids to cope with this change? If other advertisers' psychology is really affected and their CPA is increased, then the eCPM that the media gets from other advertisers will increase, so the chance of your ads being displayed will decrease, thereby reducing your conversion rate. This is just like the fact that the stock market is easily affected by the psychological expectations of stock traders, resulting in stock price fluctuations.

2. After the change of oCPM, have the optimization strategies and algorithms within the media changed? ——This is their biggest business secret. We don’t know, but we can’t rule it out.

3. Under the oCPM method, the media will not increase the effect simply by increasing exposure, because increasing exposure will reduce pCTR. The media will consider improving the accuracy of the population to achieve higher pCTR and pCVR. Therefore, under the past oCPC method, the actual CPC was already higher than the actual CPC of the non-oCPC method, and under the oCPM method, the actual CPM appears to be even higher. This may make advertisers feel that advertising has become more expensive and less effective.

2. In order to accumulate optimization data, the initial population targeting can be broader; but for better pCVR and pCTR values, the population should not remain broad for a long time, but should be optimized gradually.

3. Creativity and landing page are very, very important. After all, these two directly affect your pCTR and pCVR.

Everyone is welcome to discuss the other "real" mysteries behind it.