Adwords Fundamentals

How do cost-per-click (CPC) ads compete with cost-per-thousand impressions (CPM) ads on the Google Display Network?

How do cost-per-click (CPC) ads compete with cost-per-thousand impressions (CPM) ads on the Google Display Network?

  • CPC bids are effectively converted to CPM bids
  • CPM bids are effectively converted to CPC bids
  • Ads using CPC bids are not allowed to compete on the Display Network
  • CPC and CPM bids only compete against bids of the same type

The Correct answer is:

  • CPM bids are effectively converted to CPC bids

Explanation: Many advertisers hope viewers will click their ad — but that’s not always the main goal. Maybe you just want a lot of people to see your ad. In that case, bidding by cost-per-thousand viewable impressions (vCPM) is a good way to go. With vCPM bidding, you bid for your ad based on how often it appears in a viewable position on the Google Display Network. You set the max amount you want to pay for viewable ads, whether they’re clicked or not.

You can set your max viewable CPM bid in a couple of ways. Let’s say you sell flowers, and you’ve set up an ad group with keywords like roses, daisies, and tulips.

  • Ad group bids: Set your max viewable CPM at the ad group level, and you’ll have the same viewable CPM bid for all keywords and placements in that ad group. Let’s say you choose an ad group viewable CPM of US$1.20. If your ad shows on a site that’s associated with roses or tulips, or appears on a blog about flowers, the max viewable CPM is always US$1.20. This is the easiest way to manage your viewable CPM bids.
  • Placement-level bids: You can set a viewable CPM bid for each place if you like. If you know a site gets great results for you, you can bid more for placements on that site.

More read: https://support.google.com/google-ads/answer/2630842?hl=en

Ali Raza

Ali Raza is a Web Developer and Digital Marketing Consultant.

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