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Seriously – Is CPM Bidding a Scam?

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# 1
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After reading about CPM I'm not convinced that there is a right time to use it.

 

Considerations:

 

This statement taken from the support page on Cost-per-thousand-impressions bidding seems to be moot when looking at the actual QS and cost model information:

 

Others simply don't care about clicks for their ad campaign. Businesses that just want to get their name in front of more people, for instance, may care more about ad views than about clicks and visits to their website.

 

It therefore seems like a very legitimate question to ask: Why would someone ever choose this model? Can it save money? It doesn't seem so... it seems as though it's just a different way to charge an advertiser the same amount.

 

In fact, given what I have offered above, this seems more like a way to try and get more money out of those advertisers who don't know or care enough about QS and will not take the time and effort required to compare results of both CPC and CPM.

 

Can a campaign be optimized at all by choosing CPM over CPC, or is it basically just a vanity term with little actual impact on the campaign? If so, how?

 

Hoping there is something that I can learn here, and that I am proven wrong.

3 Expert replyverified_user

Re: Seriously – Is CPM Bidding a Scam?

[ Edited ]
Top Contributor
# 2
Top Contributor

Hi there;

CPM is not necessarily to save money / budget.

 Some advertisers,   under some goals, would be interested in exposure rather than  direct conversions (e.g. Launching a new product for which you wish,  first, to create interest,  or  the goal is brand awareness).  The question is what is your campaign  objectives are, not how much budget is allocated. This does not suggest  that a CPM  campaign does not bring conversion, - just that the  focus is towards exposure.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Seriously – Is CPM Bidding a Scam?

[ Edited ]
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# 3
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Ok, let's rephrase the question then:

 

Can an advertiser gain any more exposure for the same budget by using CPM bidding vs. CPC bidding?

 

If so, could someone explain, how? 

Re: Seriously – Is CPM Bidding a Scam?

[ Edited ]
Collaborator ✭ ✭ ✭
# 4
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Hello Drew C,

 

I want to add some ideas to the very good advice from Sir Moshe.

 

I work with CPM every day and I can tell you that by targeting the same placement , with the same ads , same daily budget , CPM bidding gets me more impressions and less clicks for the same spending , compared to an identical setup where I use CPC bidding.

 

I think it is not only a bidding method but also a different "ad serving method" as my Ads got served to users who click less often. However this is just an assumption.

 

As a difference with CPM bidding you will see an Avg. Pos. Of always 1.0 for Display Ads.

 

 

 

Re: Seriously – Is CPM Bidding a Scam?

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# 5
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Thanks, ok, this is starting to open up a bit.

So otherwise put, would you say that your feeling is that, though omitted from at least the high level documentation about this, that Google uses differing standards in regards to performance for the two bidding models?

Re: Seriously – Is CPM Bidding a Scam?

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# 6
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Also, do you have any tips about achieving the kind of campaign experience you are having, or is this just a result of employing "normal" campaign best practices?

Re: Seriously – Is CPM Bidding a Scam?

Collaborator ✭ ✭ ✭
# 7
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Look at this screenshot from 2 remarketing campaigns using the same ads and same targeting a single identical audience. The campaigns never reach their daily budget so they are not limited by the budget.

 

With the "viewable CPM" bidding method I obtained 1.098.324 impressions and 602 clicks from 554 ron ( my local currency) and with the CPC bidding method I obtained 1.677.858 impressions and 4981 clicks from 2182 ron. So you see how with 4 times less spending I obtained more than half of the volume of impressions from the CPC campaign, same targeting .

 

viewable-cpm-statistics.JPG

 

I would recommend setting up a campaign with the CPM bidding "viewable CPM" as this method only charges you for 1000 impressions IF your ads have been on the screen level for at least 1 second.

 

If you are wondering how much to bid for CPM , at first try minimum CPM bidding and if this doesn't give you impressions in 24 hours , raise the bid in small amounts 10-20%.

 

Here is more info about "viewable CPM" :

https://support.google.com/adwords/answer/3499086?hl=en

Re: Seriously – Is CPM Bidding a Scam?

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# 8
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Thanks for sharing this information.

In light of this... How do you suppose this works?

Could it be that AdWords tries to find people that won't click on your ad – and if so, are these impressions therefore less valuable than your CPC impressions?

Re: Seriously – Is CPM Bidding a Scam?

Collaborator ✭ ✭ ✭
# 9
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That depends on what you consider valuable. To me getting 1 million impressions for nearly 140 USD is valuable exposure. I couldn't have bought an ad space in a newspaper which issues 1 million copies for this sum. The outcome , if people remember your brand or not after these CPM impressions is not measurable.

 

If you only value clicks as a measure of advertising , better stivk with CPC bidding as CPM from the same budget , same targeting , will not get you more clicks , based on my experience.

 

If others have a different view or experience , please write.

 

 

Re: Seriously – Is CPM Bidding a Scam?

Top Contributor
# 10
Top Contributor

I agree that in CPM the system is more "flex" in deciding whether the ad takes part in the auction, using CPM bidding.

Also remember, that originally, in the early days, one of the  driving forces  for  CPM launching, was that  "traditional advertisers" who  advertised on other platforms or bought media directly from publishers, were offered "media packages"  based on cost per impressions  Google also had to offer the same bidding, so advertisers could "compare apples to apples" when buying media.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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