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CPM Bidding

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# 1
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I see a lot in the AdWords literature about CPM vs. CPC bidding but I don't see anywhere to set up CPM bidding.  Suppose I wanted to do CPM bidding.  Where would I configure that?

 

Thanks.

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Accepted by Karl (Explorer ✭ ✭ ☆)
September 2015

Re: CPM Bidding

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# 2
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Hello stevea,

 

CPM bidding refers to Cost per thousand impressions which you are willing to spend on Google Display Network. This is more related to brand awareness advertising model as compared to leads, sales model. Hence Google also prefers CPM bidding for those set of advertisers compared to CPC bidding. 

 

You can refer to these articles for more details:


CPM bidding

How does manual bidding for impressions work?

How do CPC and CPM ads compete with each other?

 

Happy Reading!

Pankaj


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Accepted by Karl (Explorer ✭ ✭ ☆)
September 2015

Re: CPM Bidding

[ Edited ]
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# 4
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As Pankaj mentioned CPM bidding is available only for Display Network as it serves a different purpose, usually used with display ads where clicks on the ads are not always the main purpose of the ad (depending if you're main goal is direct response or branding). On Display Network sites, people stay a lot longer on one specific page and the display ad stays with you for that duration. On search however people come to find what they are looking for and leave quickly thereafter. This is one of the reasons you can use only CPC bidding on search as your main target is to get as many clicks as possible.

Hope this clarifies it.

View solution in original post

Marked as Best Answer.
Solution
Accepted by Karl (Explorer ✭ ✭ ☆)
September 2015

Re: CPM Bidding

Top Contributor
# 2
Top Contributor

Hello stevea,

 

CPM bidding refers to Cost per thousand impressions which you are willing to spend on Google Display Network. This is more related to brand awareness advertising model as compared to leads, sales model. Hence Google also prefers CPM bidding for those set of advertisers compared to CPC bidding. 

 

You can refer to these articles for more details:


CPM bidding

How does manual bidding for impressions work?

How do CPC and CPM ads compete with each other?

 

Happy Reading!

Pankaj


Re: CPM Bidding

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# 3
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"CPM bidding refers to Cost per thousand impressions which you are willing to spend on Google Display Network.."

 

None of the articles you linked to say that CPM is only for the Google Display Network.  They're explained as two independent methods which can compete with each other.   I don't see where CPM is excluded from search traffic. And if it is possible to use CPM with search traffic, how would I set that up?

 


Marked as Best Answer.
Solution
Accepted by Karl (Explorer ✭ ✭ ☆)
September 2015

Re: CPM Bidding

[ Edited ]
Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆

As Pankaj mentioned CPM bidding is available only for Display Network as it serves a different purpose, usually used with display ads where clicks on the ads are not always the main purpose of the ad (depending if you're main goal is direct response or branding). On Display Network sites, people stay a lot longer on one specific page and the display ad stays with you for that duration. On search however people come to find what they are looking for and leave quickly thereafter. This is one of the reasons you can use only CPC bidding on search as your main target is to get as many clicks as possible.

Hope this clarifies it.

Re: CPM Bidding

Top Contributor
# 5
Top Contributor

Hi Stevea,

 

The link that Pankaj posted ( http://support.google.com/adwords/bin/answer.py?hl=en&answer=6310 ) states: "CPM bidding means that you pay based on the number of impressions (times your ads are shown) that you receive on the Google Display Network

 

This option is not available for Search Network campaigns.

 

The Search Network is used to deliver relevant ads to users based on their search queries.  The users are looking for something specific and Google wants to deliver ads that are useful to the user based on that query.  CPM bidding, as previously suggested, is more for branding, sticking a visual out in front of users over and over for as long as possible in an attempt to build brand awareness. 

 

Although I can see the use for it from an advertisers perspective, my guess is that it's counter productive for Google to deliver CPM ads on SERPs.  It does not generally add to the user experience.

 

My couple cents.

 

-Tom

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Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
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