Dynamic Cost per Mille (short: dCPM) is a modified version of the conventional cost-per-mille (CPM) payment metric.
Within conventional CPM campaigns, marketers usually pay a fixed rate for every thousand ad impressions to the publisher. Hence, the payment rate stays the same throughout the duration of the campaign.
As opposed to this model, the rate is allowed to fluctuate on a per impression basis within dynamic CPM campaigns. In dCPM campaigns, the payment rate fluctuates based on each impression’s value to the marketer. At the same time, it is averaging out to a flat CPM agreed to at the beginning of the campaign.
A dCPM campaign is very effective because impressions are purchased based on their perceived value, measured against the conversion goal of the marketer. Thus, it enables marketers to pay an optimized rate for each impression and helps to spend the campaign budget as efficient as possible.