Me
Summarise the trade-offs between static CPM and formula CPM using only doc language.
Enki
**Source:** [CPM Percentile Configuration](https://tripledotstudios.atlassian.net/wiki/spaces/KB/pages/4244537368/CPM+Percentile+Configuration)
## Static CPM vs. Formula CPM: Trade-offs
### Static CPM Characteristics
- **Pros:**
- Simple, fixed value
- Predictable floor price
- Easy to configure
- Immediate implementation
- **Cons:**
- Lacks dynamic adaptation
- No consideration of market fluctuations
- Manual adjustment required for changing conditions
### Formula CPM Characteristics
- **Pros:**
- Dynamic price calculation
- Adapts based on recent performance
- Uses historical data from multiple buckets
- Flexible coefficient application
- **Cons:**
- More complex configuration
- Requires sufficient ad request data
- Potential volatility in floor prices
- Depends on event collection being enabled
### Key Differences
| Aspect | Static CPM | Formula CPM |
|--------|------------|-------------|
| Price Determination | Fixed value | Calculated from recent events |
| Data Sources | Manual input | MAX, Google, Meta buckets |
| Adaptability | Static | Dynamic |
| Minimum Requirements | None | Min 3-4 ad requests |
### Recommended Use Cases
**Use Static CPM When:**
- Predictable revenue is paramount
- Limited historical data exists
- Simple, consistent pricing is desired
**Use Formula CPM When:**
- Market conditions frequently change
- Sufficient historical data is available
- Want to optimize pricing dynamically
### Implementation Tip
Consider enabling both with a fallback strategy to balance predictability and adaptability.