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Local CPM ads vs GDN

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

 Hello, I have a question why local ad agencies propose CPM rates are 5 times higher than GDN banners? Any reason behind? Ad agencies can't guaranty conversions and even clicks, all wrong estimations finishing with blia blia..

Is this kind of they business model to cheat on expectations?

2 Expert replyverified_user

Local CPM ads vs GDN

Top Contributor
# 2
Top Contributor

Be ware of any agency that misrepresent  Google's auction system. No one can guarantee performance on AdWords.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Local CPM ads vs GDN

Top Contributor
# 3
Top Contributor

Hi @Nerijus C

 

You can not compare different channel with AdWords, every channels have a different pros and cons.

The other third party gives you the CPM rate based on publishers or sometimes through programmatic buying.

--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
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Local CPM ads vs GDN

Explorer ✭ ☆ ☆
# 4
Explorer ✭ ☆ ☆

If the agency is placing banner ads directly with a publisher, such as a local news affiliate, the CPMs will be much, much higher than on GDN. If the agency is placing ads on GDN themselves and reselling, they typically add in a percentage for management.

Local CPM ads vs GDN

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Thanks to everyone, last questions: 

 

If CPM more expensive why it still holds competition from GDN? Stupid customers?

 

Why GND cheaper? Maybe CPM local networks hold better positions and that's why more expensive and rest (not sold or bad positions) left for AdSense?

Local CPM ads vs GDN

Top Contributor
# 6
Top Contributor

In order for CPM to compete with CPC, CPM is converted into   an equivalent CPC  to create a common basis for the two.

Read more in this discussion, 

https://www.en.advertisercommunity.com/t5/Advanced-Features/CPC-Ads-amp-CPM-Ads-compete-in-same-auct...

 

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’