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I have Max CPM €1000, how could I calculate my CPM diary Budget?

[ Edited ]
FG
Visitor ✭ ✭ ✭
# 1
FG
Visitor ✭ ✭ ✭

Hello Google AdWords Community!

Let's say I have Max CPM €1000, what is my Dairy Budget (Display Network Only - Bidding and budget settings)?

 

Regarding CPC, I can use the following formula: Daily Budget = Monthly budget / Average number of days per month.

 

But I cannot apply the same formula for CPM, because If I put €33 as Dairy Budget (1000 / 30.4) and €1000 as Max CPM, the following message will be shown: Bid is larger than the budget

Thank you in advance for your help!

Fran

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Accepted by topic author FG
September 2015

Re: I have Max CPM €1000, how could I calculate my CPM diary Budget?

Top Contributor
# 2
Top Contributor

Hi Fran, and welcome to the Community!

 

A figure of €1000 for Max CPM would be very, very high.  The CPM model of AdWords is a "cost per thousand" impressions on an Ad and typically the costs involve mirror those of a CPC model.  So, if your CPC costs were €2 a click and you had a CTR (Click Through Rate) of 1%, you'd be paying €20 per 1000, so your Max CPM could be something like €25.

 

I suspect you may be misunderstanding the CPM/CPC cost models so perhaps you may want to read up on them and get back to us with any more questions?

 

CPM Bidding

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author FG
September 2015

Re: I have Max CPM €1000, how could I calculate my CPM diary Budget?

Top Contributor
# 2
Top Contributor

Hi Fran, and welcome to the Community!

 

A figure of €1000 for Max CPM would be very, very high.  The CPM model of AdWords is a "cost per thousand" impressions on an Ad and typically the costs involve mirror those of a CPC model.  So, if your CPC costs were €2 a click and you had a CTR (Click Through Rate) of 1%, you'd be paying €20 per 1000, so your Max CPM could be something like €25.

 

I suspect you may be misunderstanding the CPM/CPC cost models so perhaps you may want to read up on them and get back to us with any more questions?

 

CPM Bidding

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: I have Max CPM €1000, how could I calculate my CPM diary Budget?

FG
Visitor ✭ ✭ ✭
# 3
FG
Visitor ✭ ✭ ✭

Thank you very much Jon!