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How to estimate the cpm for a display campaign aimed at awareness ?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi all, what is the most accurate way to arrive at a realistic estimate of spend required to achieve the desired outcome? If you have to quote a client before winning the work? How do the professionals discuss all of the variables with their clients? 

1 Expert replyverified_user
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Marked as Best Answer.
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Accepted by topic author Greg L
January 2016

Re: How to estimate the cpm for a display campaign aimed at awareness

Top Contributor
# 2
Top Contributor
Hi there;
Google converts CPM into equivalent CPC (eCPC).
The formula is quite complex and not fully disclosed.
As an estimate, take CPM to be the price you are willing to pay per click.
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Greg L
January 2016

Re: How to estimate the cpm for a display campaign aimed at awareness

Top Contributor
# 2
Top Contributor
Hi there;
Google converts CPM into equivalent CPC (eCPC).
The formula is quite complex and not fully disclosed.
As an estimate, take CPM to be the price you are willing to pay per click.
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: How to estimate the cpm for a display campaign aimed at awareness

Participant ✭ ✭ ✭
# 3
Participant ✭ ✭ ✭
Hey Gred, how are things?

I'd like to add one thing that I find very, very important.

No matter how you achieve the estimate, how well it's done, it's still and always going to be an estimate. A lot of advertisers spend a lot of effort trying to come up with the perfect estimate, when all they need to actually begin, try, test and optimize.

If you've never done or run anything, don't lose much time on that and spend your energy on creating on historic data of your own. This will provide the needed insights for you to take further steps.

Also, create a plan on where you're now and where you want to be. Advertisers very often begin their campaigns and get frustrated because they expect incredible results right from the start, where they actually need to learn and optimize, to get where they want to.

I hope this can give a hint on where to go and how to control possible anxiety. on getting results Smiley Happy

Cheers,

Leandro Martinez | Basta1Click

Re: How to estimate the cpm for a display campaign aimed at awareness

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭
Thank you for the insight. I'm finding that clients are increasingly concerned with rapid results and they want 'accurate' projections. My initial approach is always to broadly estimate and to test. Lately this approach is less popular with medium and smaller clients. Thanks again.

Re: How to estimate the cpm for a display campaign aimed at awareness

Participant ✭ ✭ ✭
# 5
Participant ✭ ✭ ✭
Hey Greg,

I can relate to that since I stumble on this my self. What I find important is to insist and educate the client, because this can turn into a trap in the future. If we give in into that client thinking, they will always try to base the numbers on the previous estimate, and since they haven't any historical data, it's most likely they will not be pleased.

I've turned down a few clients here and there because of that. I've had a lot of trouble with this and it's just not worth just to please the client and earn some money...I prefer to let them go and see for them selves with another professional, and at some point return to me, rather than having trouble with me and think my bad work is bad, when in fact they have the wrong thinking. Well...That's my view on this Smiley Happy

Leandro Martinez | Basta1Click

Re: How to estimate the cpm for a display campaign aimed at awareness

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
Agreed, you're very right. I use the supply / demand analogy and use a few comparisons between different industries - which is great for CPC because it is quite easy to run a small test and extrapolate from that data. With display campaigns it seems to me that it takes a bit longer to establish the bench marks. Many clients say ' why should we pay you to experiment or learn wit hour budget'. Those clients are best avoidedSmiley Happy Thanks for the feedbackSmiley Happy

Re: How to estimate the cpm for a display campaign aimed at awareness

Explorer ✭ ☆ ☆
# 7
Explorer ✭ ☆ ☆

I would work backwards using the average CTR for text-ads and/or display ads, and given your client's budget, say $25 a month and the price you would set a bid at, like $0.50, you have the number of clicks each month. So now you have 50 clicks and take an average CTR of 2%, that is 2,500 impressions for $25. 

Re: How to estimate the cpm for a display campaign aimed at awareness

Top Contributor
# 8
Top Contributor

@Hoang P;

This would be correct, but applies only to text ads. Banner ads are more expensive because occupying several ad slots, hence, when you have several banners in different sizes this would be difficult to estimate /   calculate.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: How to estimate the cpm for a display campaign aimed at awareness

[ Edited ]
Explorer ✭ ☆ ☆
# 9
Explorer ✭ ☆ ☆

And also, the CTR on display ads are much lower, if the CTR for text-ads is 2.00% the display ad will be something like 0.02%.<edited by a Community Manager as noted below

 

NOTE: This post has been edited by a Community Manager - per Community Posting Guidelines - in order to remove a lengthy email / mobile footer. Please be sure to remove this information in future replies via email.