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CPM clicked 1000% less than CPC based on impressions

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

When I do a CPM campaign, the click % is literally 1000% (10x) less then when I do CPC.

 

Why is that? Are the ads being placed in a place where no one sees them with CPM? I truly don't care about clicks, but I do care about them being seen. That they're being clicked 10x less often than when I do CPC is suspicious.

 

I will give an example in case the description isn't clear. Example: with CPC my ads seen 50,000 times and clicked 500 times. But with CPM seen 50,000 times and clicked 50 times. This test has been done over an extended period of time, not just a day or two.


Any ideas?

1 Expert replyverified_user

Re: CPM clicked 1000% less than CPC based on impressions

Top Contributor
# 2
Top Contributor
Hello, Damian. You'll have to analyze the placements where those ads appeared in the two situations. I'm pretty sure they were not shown on the same placements.

Ideally, if you care about your ads being seen, you should use some kind of targeting method coupled with your bidding. Bidding on any placement, for any kind of audience (gender, age, interests), regardless of the website topic, is not a winning recipe, in my opinion.

From what you're telling us, Google's been doing its job. When it was clicks you wanted, it delivered (presumably by showing them where they had a higher chance of getting clicked). When it was impressions, it probably looked for high-traffic placements, regardless of the click probability.

But then again, CPM bidding with no other restriction is simply telling Google "here, take my money and show my ads anywhere; I don't care where, just get me impressions".

Sure CPM can work well, because when winning an auction, a CPM ad can take up the whole ad slot (https://support.google.com/adwords/answer/2630842?hl=en) and gain more visibility. But it can also lead to many impressions being accrued on all sorts of websites.
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: CPM clicked 1000% less than CPC based on impressions

Collaborator ✭ ✭ ✭
# 3
Collaborator ✭ ✭ ✭

Hello Damian,

 

I would recommend also to switch to  the setting Viewable CPM instead of simple CPM and enable the Custom Columns "Performance Active View". This way you can see that you get charged for the metric "viewable Impressions" but you also get 2-3 times more standard "impressions". The way it works is that it considers an impression to be "viewable" when your banner ( or text ad ) is at least 50% on the screen level for at least 1 second. If you want I can share statistics for runing such a campaign.

 

Here is the documentation :

 

https://support.google.com/adwords/answer/3499086?hl=en

Re: CPM clicked 1000% less than CPC based on impressions

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭
Excellent thanks for these detailed replies. I still find the huge difference a bit strange. The only thing that changed was CPC to CPM. Keywords all the same and such. My main concern is that they're being seen at all. Well, I will look through these suggestions and see if I can improve the issue.

Re: CPM clicked 1000% less than CPC based on impressions

Collaborator ✭ ✭ ✭
# 5
Collaborator ✭ ✭ ✭

With Viewable CPM the banners are seen but my guess is that Google simply serves CPM and viewable CPM with preference to users who are not in the habit of clicking but rather in the habit of browsing a lot.

Google has this kind of data since they also serve Ads based on user Interests, analyzing what pages a user reads most frequently.

 

Here is a statistic side by side Viewable CPM , CPC in display and Remarketing in Display.

You can see on the Viewable CPM campaign that impressions are more than twice the Viewable Impressions, and yes the clicks are very few, even if the total impressions are almost the same as the CPC campaign, having the same targeting. The targeting in the first 2 campaigns is placements with a narrowing by gender and age.

 

viewable-cpm-statistics.png

Re: CPM clicked 1000% less than CPC based on impressions

[ Edited ]
Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

I checked my settings, and I'm set to viewable for CPM. So that's not the issue. Check out the difference here. One is CPC, other CPM viewable. I understand there might be a difference, but this big a difference seems astonishing.

CPC 30 days
http://i.imgur.com/cZM26LN.jpg

CPM 30 days
http://i.imgur.com/CnJtZne.jpg

 

I did notice my ads going on a bunch of strange sites I've never heard of. So now I've targeted only specific sites. I'm not sure whether that will help or hurt. Perhaps they won't show up very much at all with my bid ($.50 RPM)

Re: CPM clicked 1000% less than CPC based on impressions

Collaborator ✭ ✭ ✭
# 7
Collaborator ✭ ✭ ✭

Hello,

 

First the computation goes like this :

 

1) The CTR for the CPC bidding is 385 clicks / 70953 impressions = 0.0054 % 

2) The CTR for the CPM bidding ( you say it is viewable) is 112 clicks / 221993 imp. = 0.0005 %so the difference between the 2 CTR values is only 10 times not 1000 times.

 

Besides this you are not looking at the column "Viewable impressions" and "Viewable CTR" which you should since you are bidding for "viewable CPM". To see the data from these columns click the "Columns" button>>"Customize columns" >>Select metric "Performance (Active View)>>add "Active View viewable impr." and "Active View avg. CPM".

 

You may recalculate now situation 2 based on the number of viewable impressions getting around a 2-3 times higher CTR. This makes the difference between cpc bidding and cpm bidding only 3 times less CTR, which is normal since the system is still serving impressions to users who are not in the habit of clicking ads.

Re: CPM clicked 1000% less than CPC based on impressions

Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭
To make something clear... i said 1000%, not 1000x. There is a big difference. .005 vs .0005 = 10x = 1000% . I will look into what you wrote otherwise and try to make sense of it : )