Outcome-Based Advertising in 2024: Benchmarks & Best Practices
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Personalized Marketing: AI helps in analyzing customer data to create personalized marketing campaigns
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Introduction – The Rise of “Pay-for-Outcome”
Advertisers are tired of paying for impressions that never convert. That frustration has pushed outcome-based models—CPI, CPA, CPL, CPP (pay-per-purchase)—from niche to norm. In 2024, 58% of mobile budgets globally shifted to some flavor of performance contract and analysts expect that figure to cross 70% by 2026. If you’re still buying on CPM, you’re swimming against the current.
TL;DR: Outcome pricing reduces risk, but only if you understand the benchmarks and guard against fraud.
1. Latest Benchmarks (Q1 2024)
Vertical: Gaming - Casual
Median CPI: $1.35
Median CPA (purchase): -
Median CPL: $4.10
Vertical: Fintech
Median CPI: $3.80
Median CPA (purchase): $34.00
Median CPL: $10.25
Vertical: Health & Fitness
Median CPI: $2.65
Median CPA (purchase): $42.50
Median CPL: $8.90
Vertical: E-com / Retail
Median CPI: $2.10
Median CPA (purchase): $29.40
Median CPL: $6.75
2. The Economics of Risk Transfer
- CPM ► Outcome = Risk migrates to the supply side.
- Networks/DSPs now shoulder conversion uncertainty and price that risk into the payout.
- Advertisers win predictable CAC; publishers get paid only for real value.
3. Smart Contract Structures
- Tiered Payouts – pay $X per conversion until volume > Y, then step-down rates kick in.
- Lifetime-Value Floors – bonus payouts when downstream LTV crosses a threshold.
- Hybrid CPM + CPA – tiny CPM to keep publishers solvent during learning, bulk on CPA once models stabilize.
4. Fraud-Mitigation Playbook
- Real-time device & IP clustering to snuff install farms.
- Post-install event validation (ROAS checkpoints within D7).
- Partner with MRC-accredited anti-fraud vendors; insist on raw logs.
5. Creative & CRO Still Matter
Outcome pricing doesn’t absolve you from creative fatigue or a broken funnel. High-intent clicks die on bad landing pages. Keep running multivariate tests and feeding winners back into the ad engine.
Conclusion
Outcome-based buying isn’t a silver bullet—but paired with robust fraud controls and constant creative iteration, it’s the fastest path to predictable growth. Ready to benchmark your campaigns? Book a strategy call and we’ll run the numbers.
