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Difference between max CPC bid, max CPM bid and CPA bid

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

 

In Adwords editor under the adgroups tab I can see default max CPC Bid, max CPM Bid and CPA bid. Although I have some knowledge on what they mean, I'm a little confused as to exactly what they do. Can someone explain what is the difference between them please? Also, does a figure need to be added in all three of them?

 

Thanks 

1 Expert replyverified_user

Re: Difference between max CPC bid, max CPM bid and CPA bid

Participant ✭ ☆ ☆
# 2
Participant ✭ ☆ ☆
hey Rashed,

Max cpc: It is the maximum amount that you are able to pay for a click on your ad
Max CPM: Cost of thousand impression, It is set of thousand impression and you pay for each set of a thousand showings of your ad rather than paying for the number of clicks that you receive
CPA: The amount you the amount you're able to pay for a conversion.


You can set bidding option as per your goal. Generally people want to promote their brand choosing CPM Bid.

Please let us know for any further assistance.

Re: Difference between max CPC bid, max CPM bid and CPA bid

Participant ✭ ☆ ☆
# 3
Participant ✭ ☆ ☆

Hi Rasheed,

 

Adding to what kandarp has said,

Yes, you have to set a figure in order to limit the maximum amount that you are willing to pay for a click, thousand impressions or/and Acquisition.

Depending on type of goals you want to achieve with a campaign you have to set the bidding strategy.

 

CPA- Cost per Acquisition (conversion).

 

Thanks and Regards

John Paul

Re: Difference between max CPC bid, max CPM bid and CPA bid

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆
Hi Rashed,

Adwords offers several Bid strategies for different type of campaigns. depending on your network (search or display) & your campaign goals you can choose a bid strategy for your campaign. you can choose only one type of bidding strategy for your campaign depending on the campaign type and network you choose(I.e. CPM is not available for Search Network).

In Cost Per Click (CPC) Bidding you set a maximum amount you want to pay if someone click on your ad. Here Max CPC is maximum amount you willing to pay for a single click,
Your max. CPC bid is the most you'll be charged for a click, but you'll often be charged less - sometimes much less.

In CPM (Cost per Thousand Impression) Bidding you pay according to number of impression you receive for your ad. Here also Max CPM bid is maximum amount you willing to pay for 1,000 views of your ad.
CPM bidding is currently available for the "Google Display Network - All features" and "Google Display Network - Remarketing" campaign types only.
CPM bidding is best suited for advertisers who are focused on brand awareness. For advertisers whose main goal is sales or website traffic, CPC bidding might be a better option.

In Cost per Acquisition (CPA) Bidding you set a amount you are willing to pay for a conversion. It's part of the AdWords Conversion Optimizer feature, which predicts which clicks are likely to lead to a conversion and automatically sets your bid to try to get you as many conversions as possible, at the cost-per-acquisition bid you specified. Here also A maximum CPA bid (max. CPA bid) is the most you're willing to pay for each conversion.
To use CPA Bidding Strategy your campaign must have received at least 15 conversions in last 30 days.

Hope this helps

Regards,
Rahul Goel

Re: Difference between max CPC bid, max CPM bid and CPA bid

Top Contributor
# 5
Top Contributor

Hi Rashed, note that in the AdWords Editor you only have to provide a figure in the relevant box for the type of Campaign you're creating.  So, if you've created a Search Campaign you'd only need to put a figure in the Max CPC box.

 

Jon

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