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Gdn Campaign strategy (cpm vs Cpc)

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# 1
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Hi,

 

I know that this subject has been posted already on forum, but i add a specific user case.

 

1/ I try to find my way regarding on which strategy to use for  an ecommerce website selling goods such as hifi, electric household appliances  (web to store only for specific cities) with a tiny display budget  (about $4000/year so roughly $300/a month) . I have the possibility  either launching a "one shot campaign" for a short period of time on specific stuff or  spreading  throughout the year some impressions and clicks. Is it sensible ?

2/ CPM or CPC bid ? the display planner don't give me the response Smiley Sad as when i set some estimates, cpc (directe response)  or cpm (branding) look  the same ! Anyway, i think i 'll choose cpc bid for sure, as we can get impressions + clicks sometimes. CPM seems to be more for large budgets where advertisers look for visibility rather than sales. What's your opinion on that ?

Thanks a lot for sharing your experience on that matter..

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Accepted by topic author garguier s
September 2015

Re: Gdn Campaign strategy (cpm vs Cpc)

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# 2
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Hello,

 

I am sure that many forum members can offer you their personal input of this problem and I would love to read their opinion.

 

1) First of all for e-commerce sales , the Search Campaign is recommended, not the Display.

 

But if you want to work with the Display Network, set a test budget, maybe the first 300 $ . How many clicks do you estimate to get from 300$ ? Are there 100 or 1000 ?

 

Use a very limited set of targeting , analyze the conversions and don't hesitate to delete the placements or other targeting that do not convert.

If you dilute the 300$ to too much targeting methods like 1 keyword and 50 placements in the same ad group, there is a risk that "the system" does not award you with impressions for all placements.

 

Segment as much as you can from analyzing traffic, if conversions are attributed 70% to males instead of females, target only males.

 

If orders can be placed on site 24/24 , I tend to separate campaigns into night 12 hours,  weekends 24/24 and daily 12 hours. There are 3 different types of buyers who use these time segments to purchase and the conversion cost could be a lot smaller during the night for example. If you do not separate in time segments, the average from day+night can be misleading.

 

In the campaigns where you have at least 50 conversions ( not only the minimum 15 ) enable the DCO to optimise conversion cost.

 

2) About CPM or CPC bid, read the opinions of Top Contributors from this thread. Apparently the CPM bid means "the system" will enter your Ads in auctions where it estimates that a click is less likely to occur , because your intention is to obtain only impressions, so do not expect many clicks when bidding CPM but do expect an avg pos of 1. Not really good for sales, isn't it ? Smiley Happy

 

https://www.en.adwords-community.com/t5/Improve-results/When-is-the-switch-from-CPC-to-CPM-profitabl...

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Accepted by topic author garguier s
September 2015

Re: Gdn Campaign strategy (cpm vs Cpc)

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# 2
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Hello,

 

I am sure that many forum members can offer you their personal input of this problem and I would love to read their opinion.

 

1) First of all for e-commerce sales , the Search Campaign is recommended, not the Display.

 

But if you want to work with the Display Network, set a test budget, maybe the first 300 $ . How many clicks do you estimate to get from 300$ ? Are there 100 or 1000 ?

 

Use a very limited set of targeting , analyze the conversions and don't hesitate to delete the placements or other targeting that do not convert.

If you dilute the 300$ to too much targeting methods like 1 keyword and 50 placements in the same ad group, there is a risk that "the system" does not award you with impressions for all placements.

 

Segment as much as you can from analyzing traffic, if conversions are attributed 70% to males instead of females, target only males.

 

If orders can be placed on site 24/24 , I tend to separate campaigns into night 12 hours,  weekends 24/24 and daily 12 hours. There are 3 different types of buyers who use these time segments to purchase and the conversion cost could be a lot smaller during the night for example. If you do not separate in time segments, the average from day+night can be misleading.

 

In the campaigns where you have at least 50 conversions ( not only the minimum 15 ) enable the DCO to optimise conversion cost.

 

2) About CPM or CPC bid, read the opinions of Top Contributors from this thread. Apparently the CPM bid means "the system" will enter your Ads in auctions where it estimates that a click is less likely to occur , because your intention is to obtain only impressions, so do not expect many clicks when bidding CPM but do expect an avg pos of 1. Not really good for sales, isn't it ? Smiley Happy

 

https://www.en.adwords-community.com/t5/Improve-results/When-is-the-switch-from-CPC-to-CPM-profitabl...

Re: Gdn Campaign strategy (cpm vs Cpc)

Top Contributor
# 3
Top Contributor
Hi,
if I am allowed to put my opnion here:

1. I would go with only Search campaigns for small budget. As Adrian suggested search campaign is good for e-commerce online sales.

2. if you have very limited budget, so choose highly relevant and brand keywords for search campaigns.

3. If you want to run Display, I would suggests run remarketing campaigns for search ( RLSA) as well as display .

4. I would not suggest DCO campaigns to run, as DCO require high budget to yeild the better results.
DCO is not good for small budget campaign.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: Gdn Campaign strategy (cpm vs Cpc)

[ Edited ]
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# 4
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Hi Adrian  B and Rakesh !

 

@Adrian B. : Very interesting post (your link) , but confusing me a bit more Smiley Sad ..

 

1/ I 've got a  new display campaign with cpc with avg position between 1,0 to 1,7 , with low ctr 0,06 so no need to wonder if a cpm strategy would be better as i get click (20) with impressions (31 000) , at 0.38 Avg cpc.  The lower the CTR, the better for impression for cpc, and for CPM,  CTR doesn't matter, only visibility is important but with the condition to pay the good bid to get pos. 1.  That make sense ?


2/ when you say segmenting by  scheduled hours of the day, you mean creating 3 differents campaigns  or inside 1 campaign with the enhanced schedule feature ?

 

3/ CPM but do expect an avg pos of 1. Not really good for sales, isn't it ? Not sure enough due to the fact on 1/

 

@ Rakesh : DCO means enhanced cpc / Cpa / Roas ?  So , only manual bidding you suggest ?

Re: Gdn Campaign strategy (cpm vs Cpc)

Top Contributor
# 5
Top Contributor
@ Garguier, Display campaign optimize(DCO) is called Targeting optimization. It is diffrent from the ECPC, CPA and ROAS bidding. However it works well in CPA bidding.

You can find the DCO button in Display Tab- " Targeting Optimization.

you can read about DCO or targeting optimization in the below link:-
https://www.en.adwords-community.com/t5/User-Articles/Adwords-Advance-Feature-DCO/ba-p/219965

https://support.google.com/adwords/answer/190596?hl=en

Hoping you will understand the concept of DCO.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: Gdn Campaign strategy (cpm vs Cpc)

[ Edited ]
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# 6
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1/ I 've got a  new display campaign with cpc with avg position between 1,0 to 1,7 , with low ctr 0,06 so no need to wonder if a cpm strategy would be better as i get click (20) with impressions (31 000) , at 0.38 Avg cpc.  The lower the CTR, the better for impression for cpc, and for CPM,  CTR doesn't matter, only visibility is important but with the condition to pay the good bid to get pos. 1.  That make sense ?

 

Let's compute : 31 ( thousand impressions ) x cost per 1000 imp in your country ( how much is it ? ) < or > than 0.38 $ x 20 clicks = 7.6 $ . Chances are the CPM cost for this 31.000 impr. would have been bigger so you are ok if you record at least some conversions too.

 

Again, try the gmail placement, it can bring you an insane number of impressions when used with many keywords in several ad groups and it converts well too.

 

2/ when you say segmenting by  scheduled hours of the day, you mean creating 3 differents campaigns  or inside 1 campaign with the enhanced schedule feature ?

 

I prefer to use 3 campaigns to set a small budget for the night campaigns and for observing reporting without using segments.

 

3/ CPM but do expect an avg pos of 1. Not really good for sales, isn't it ? Not sure enough due to the fact on 1/

 

I tried CPM bidding , and despite the avg. pos. 1 the clicks and conversions were less than when using CPC bidding on the same placements. Of course many factors could influence this outcome , so take it as my personal experiment which may not hold a value of truth if you test the same.

 

-----------------

A really powerful solution for sales in the GDN is the dynamic remarketing campagin. This one builds banners on the fly for your "almost converted visitors" and pushes sales for them by showing interesting items in the banners. Unfortunatelly as I understand it is usable only for retail businesses.

 

http://www.google.com/think/products/dynamic-remarketing-for-retail.html

 

---------------------

 

There is also the SCM feature in beta , to combine the user behaviour in a search campaign with banners in GDN : 

 

https://www.en.adwords-community.com/t5/Improve-results/SCM-search-companion-marketing/m-p/242783/hi...

 

Online marketing has been automated too much Smiley Happy Soon I expect my desktop picture be blocked by advertising according to what I purchased more often in the last 3 months Smiley Happy

Re: Gdn Campaign strategy (cpm vs Cpc)

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# 7
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Hi Adrian,

Tks..

2/ i need to segment also the gnd campaign by cities ..so i think that i 'gonna mix all the campaign up if in addition, i segment by schedule !
But it's an interesting proposition.

1/ + 3/ The retailer want trafic before all, of course ! so i 'll go for a try to test a cpc max bidding strategy without optimizer for conversions, and will look for the number of impressions (balance between volume and costs).
----------
Dynamic remarketing need to set a remarketing tag with additional parameters (you don't need pla, do you ?) so need some technical developpement.
----------
SCM is deploying for now i think..http://adwords.blogspot.fr/2013/11/select-new-better-performing-campaign.html

yes i agree -> automation is too much for choosing which one is the best for your case Smiley Sad

Many thanks for your help..!

Re: Gdn Campaign strategy (cpm vs Cpc)

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# 8
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Dynamic remarketing is described in more detail in here and uses the Merchant Center :

https://support.google.com/adwords/answer/3124536?hl=en

Thanks for the update on SCM.

Have you also tried the french forum for some more ideas ?

https://www.fr.adwords-community.com/

Re: Gdn Campaign strategy (cpm vs Cpc)

Top Contributor
# 9
Top Contributor
@ Garguier,

The link are you referring is not for concept of SCM.
http://adwords.blogspot.fr/2013/11/select-new-better-performing-campaign.html?m=1

Here Search with Display selects shows your ads on the both places SERP as well GDN. Where as in SCM, your ads only appear on GDN networks, when users searches your keywords phrases on Search engine( Google, bing, Yahoo) and comes to the website that show GDN ads.

Search campanion Marketing is enabled by Google Account Manager by excluding category " non-search-related-traffic" from the campaigns.

Note:-non-search-related-traffic is name of the category exclusion, that is not available publically.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: Gdn Campaign strategy (cpm vs Cpc)

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# 10
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Many tks Rakesh and Adrian for sharing ideas ..