All price models for push notifications: advantages and disadvantages

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Which is the best payment option for push ads?

Push notifications are a great way to keep your app users engaged. But what's the best pricing model for push notifications? We take a look at the pros and cons of the three most popular options.

With all our experience we have found the best payment method is CPC, at least our favorite, but we will explain all payment models, advantages and disadvantages so that you choose the one that best suits you understand completely how price models work.

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What exactly are push notifications paid ads?

Push notifications are a form of mainly mobile advertising (you can use them for desktop also) that allows advertisers to send messages directly to users' devices. They are typically used to deliver timely and relevant information, such as breaking news, weather alerts, or special offers. 

Push notifications can be sent to users who have agreed to receive push notifications from an app or website.

One of the grates advantages of push notifications is that they have a high open rate. This is because push notifications are delivered directly to a user's device, and they appear even if the device is locked. This means that users are more likely to see and engage with the notification, which can lead to a higher click-through rate and a higher ROI for the advertiser.

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What price model do we have to choose from when we are running a push notification paid campaign?

When buying push notification ads, advertisers have the option to decide between three different pricing models: CPC (cost-per-click), CPM (cost-per-mille, or cost-per-thousand impressions), and CPA (cost-per-action). 

Each of these pricing models has its advantages and disadvantages, and the best choice will depend on the goals of the campaign.

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CPC (cost-per-click) pricing model is when the advertiser pays each time a user clicks on their ad. This model is the most used model and is mostly used for campaigns that focus on driving traffic to a website or app and for lead generation campaigns where the goal is to collect new users. 

The biggest advantage is that you have a lot of information about users, converts and clickers, so you can analyze what customers have converted in the first instance, for example what country they are and you can retarget those users who have clicked. 

It's the cheaper option because CPC pricing only charges the advertiser when a user clicks on the ad, it can be a more cost-effective option for campaigns that are focused on driving engagement rather than conversions.

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The CPM (cost-per-mile) pricing model charges the advertiser each time a thousand users see the ad, no matter if they click on it or not. This model is often used for campaigns that focus on increasing brand awareness or visibility. CPM can be less effective for campaigns that are focused on driving conversions because the advertiser is paying for ad views that may not result in a conversion or sale.

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CPA (cost-per-action) pricing model charges the advertiser only when a specific action is taken, such as a purchase, sign-up, or download. For campaigns focusing on conversions, such as e-commerce or app downloads, this model is typically used. 

What are the pros and cons of every price model?

Here are some of the pros and cons of each pricing model for push notification ads:

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CPC

Pros:

1. Advertisers only pay when a user clicks on the ad
2. It can be a more cost-effective option for campaigns with many deliveries
3. Allows advertisers to control their costs 
4. You can also pause campaigns if conversions are low, with the main advantage that its cost will always be lower than CPA
5. Highly targeted and personalized, which can increase the chances that a user will click on the ad

Cons:

1. Advertisers may end up paying for clicks that don't result in conversions or sales
2. You can get more visibility than conversions

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CPM

Pros:

1. You won’t get any surprises with what they charge you 
2. It's the best option if you are looking for visibility
3. Advertisers can reach a large audience and get more impressions for their budget

Cons:

1. Advertisers pay every time the ad is shown to a user, regardless of whether they click on the ad
2. For campaigns that are focused on driving conversions, it can be less effective because the advertiser is paying for views that may not result in a conversion or sale

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CPA 

Pros:

1. The advertiser pays when a specific action is taken, such as a purchase or download, it's expensive but effective
2. It can be a more effective pricing model for campaigns that focus only on conversions if you have a proven funnel and offer

Cons:

1. Media buyers may have to pay for actions that don't lead to conversions or sales
2. The conversion rate with the same investment is lower than CPC or CPM
3. You’ll only have information about the users they’ve converted
4. For the last reason you won’t be able to retarget clickers

Each pricing model has its advantages and disadvantages, and the best choice will depend on the goals of the campaign. Advertisers should consider their budget, targeting options, and campaign objectives when choosing a pricing model for their push notification ads.

What bidding strategies can you use for every price model?

CPC:

1. Set a daily budget: To control costs, set a daily budget for your push notification campaigns and stick to it. This will help to ensure that you don't overspend on ads and can adjust your bid if needed.

2. Target specific segments: Use targeting options such as demographics, location, and interests to reach a specific audience. This will help to increase the chances that your ads will be seen by users who are more likely to click on them.

3. Test different ad creatives: Test different ad creatives to see which ones perform best. This will help you to optimize your ads for maximum click-through rates.

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CPM

1. Optimize for Impressions: Optimize your ad creative and targeting options to ensure that your ad is seen by as many users as possible. This will help to increase the chances that your ad will be seen and may help you to get more impressions for your budget.
2. Analyze creativities: You will be able to see which ad creatives perform best for your campaign's and test different ones.
3. Use historical data: Use data from past campaigns to inform your bidding strategy. This will help you to understand what has worked well in the past and what hasn't, and adjust your bid accordingly. 

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CPA

1. Define clear goals: Define clear and measurable goals for your push notification campaigns, such as increasing app downloads, registrations, or sales. This will help you to determine the value of each action and inform your bid strategy.

2. Optimize for conversions: Use conversion tracking to monitor the performance of your campaigns and adjust your bid accordingly. This will help you to identify which campaigns are driving the most conversions and optimize your bid to maximize your ROI.

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In summary, out of the three pricing models, CPC (cost-per-click) is considered the most effective for push notification ads. This is because it allows advertisers to only pay when a user clicks on the ad, which aligns the interests of the advertiser and the publisher. This allows the advertiser to control their costs by only paying for ads that lead to a conversion.

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Additionally, you will be able to have very wide information about all your campaigns, that users click more, where they come from, what device they use, that language, where they convert more, which creatives are more clicked... 

You’ll learn more to keep improving your campaigns.

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So if you're looking for the most effective way to pay for your next push ad campaign, be sure to choose a cost-per-click model. You'll be glad you did!

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