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What is the pricing model for Dynamic remarketing ?

Collaborator ✭ ✭ ✭
# 1
Collaborator ✭ ✭ ✭

Hello,

 

I've read this article

 

https://support.google.com/adwords/answer/3124536?hl=en&ref_topic=3180758

 

where it says "Our real-time bidding algorithm calculates the optimal bid for each impression."

 

But the Dynamic remarketing campaigns use a CPC price model as far as I know and they are very much like Product Listing Ads.

 

So what is the pricing model for a dynamic remarketing campaign CPM or CPC ?

 

I don't want to setup one right now, I am just curious.

1 Expert replyverified_user
1 ACCEPTED SOLUTION

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Marked as Best Answer.
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Accepted by topic author Adrian B
September 2015

Re: What is the pricing model for Dynamic remarketing ?

Participant ✭ ☆ ☆
# 11
Participant ✭ ☆ ☆
Hi Adrian,

I am not telling that these texts are very accurate in how they explain, First you need to have a lot of Adwords options knowledge. And they do sometimes not take the real "Adwords" terms or expressions used in other Adwords help text.

The essence is that they are not talking about the option YOU have chosen. They enumerate three points. To tell you which are three main features.

The headline above the 3 points is :

There are three main features that help drive dynamic ad performance:

And one point is : Our real-time bidding algorithm calculates the optimal bid for each impression."

And on the other pages you can read :

AdWords will select a default bidding option for your campaign, depending on whether Conversion Tracking is on (eCPC) or not (CPC).

Selecting the Target CPA option, if available, allows AdWords to use real-time bidding based on predicted clicks and conversions to maximize the number of conversions you get at your target CPA.

https://support.google.com/adwords/answer/3122586

And with Adwords knowledge you know that eCPC and Selecting the Target CPA option belongs to conversion Optimizer, have the real-time bidding algorithm.
** I´am learning Adwords and find it very interesting.
** Ik ben Adwords aan het leren en vind het erg boeiend.

View solution in original post

Re: What is the pricing model for Dynamic remarketing ?

Participant ✭ ☆ ☆
# 2
Participant ✭ ☆ ☆
Hi Adrian,

Do you confuse 2 things?
1 Dynamic campaign
2 Remarketing campaign

You can have under Display Network CPM and CPC campaings, so you can have both there as remarketing campaigns.

I know this text is confusing. When I read is first I the same problem. What is it about. The heading is very confusing.
** I´am learning Adwords and find it very interesting.
** Ik ben Adwords aan het leren en vind het erg boeiend.

Re: What is the pricing model for Dynamic remarketing ?

Explorer ✭ ☆ ☆
# 3
Explorer ✭ ☆ ☆
Hi Adrian B,

Elja G is right about :

"You can have under Display Network CPM and CPC campaings, so you can have both there as remarketing campaigns."

I recently tried to start a Dynamic remarketing campaign for one of my customers and i realised that what you need to have a Google Merchant Center Account.

"Dynamic remarketing (only for advertisers with a Google Merchant Center account): Show dynamically created ads to your site visitors, powered by your Google Merchant Center account. These ads are created based on the pages your customers visited or how they interacted with your site, and are shown to your site visitors while they view other sites on the web. Dynamic ads include relevant details such as product image, title, and price."

(Google Merchant Center is available in these countries: Australia, Brazil, Canada, China, Czech Republic, France, Germany, India, Italy, Japan, Netherlands, Spain, Switzerland, United Kingdom, and United States.)

As it concers the biding you have the following options :

"Efficient pricing: With the Google auction, you can achieve efficient pricing that can drive the right ROI for you. Use our Conversion Optimizer and allow us to automate your bids to achieve your target CPA. With CPM and CPC bidding, you have the flexibility to adjust the bid higher or lower to reach your campaign goals."

When i realised that i could't create dynamic Remarketing Campaign what i did is :

1. I installed Google Tag Manager code in the target Web Site
2. I user rules so that i would know which part of the web site a user that came from adwords visites
3. From Shared Library (Left adwords menu) i initialised new audiences and i used them in
4. Go to the Display Network Tabof your campaign , press +Change Display Targeting and under Interests & remarketing choose custom combinations and there use your Audiences previously created and mentioned above.

This way for eg when someone visits a certain part of your web site will then see certain banners !!

That's it.

Hope i helped you here.






George Gemenetzis
Don't forget to Star or credit an answer as an AdWords Accepted Solution if it helped you.

Re: What is the pricing model for Dynamic remarketing ?

Collaborator ✭ ✭ ✭
# 4
Collaborator ✭ ✭ ✭

Hi, there is no confusion, let's take a look at this page at how a Dynamic Remarketing campaign is set up :

 

https://support.google.com/adwords/answer/3122586?hl=en&ref_topic=3180758

 

(Click on Step 1 : Create a new campaign )

 

  1. On the Campaigns page, click the +New campaign drop-down menu, and select Display Network only.
  2. Add a name for your campaign. To help you later find your campaign, you might want to indicate in the name that this is a dynamic remarketing campaign.
  3. Choose the campaign type Display Network only - Remarketing. This campaign type will let you take advantage of all the built-in optimization tools. Your campaign will have one ad group that will target the four lists that were created for you by default.
  4. Click Set up dynamic remarketing.

 

 

So Dynamic Remarketing campaign is just another Display network campaign with a setting for remarketing just that the audience is picked up from the Merchant center instead of the Audience Library in adwords and has 4 categories depending on where the visitor abandoned the purchase and you cannot use a time-frame of more than 30 days from the visit like normal remarketing.

 

They also create the Ads dynamically and you are in control only for a few elements of design.

 

Although they say that the pricing options are eCPC , CPC or target CPA , that line implies that the pricing option is only CPM.

Re: What is the pricing model for Dynamic remarketing ?

[ Edited ]
Participant ✭ ☆ ☆
# 5
Participant ✭ ☆ ☆

Hi Adrian,
Than it is me, who is confused.

I just took a look.
When I look at display - Remarketing campaign settings.
I see that you can choose for : focus on impressions - CPM campaign


remarketing campaign.jpg

And thank you both Adrian and GeGe for getting my nose into things I do not know yet.

But than I like to know what are the differences?
You just can choose Display Network, and make a remarketing campaign.
I do not see other or extra options when you choose Remarketing campaign.

 

Edit extra : I just  took a look at the screen, how it looks when you make a new display remarketing campaign. 

For me it looks like what you write in your last post Adrian. For me it looks like the only difference is that there is an option for  Dynamic remarketing

** I´am learning Adwords and find it very interesting.
** Ik ben Adwords aan het leren en vind het erg boeiend.

Re: What is the pricing model for Dynamic remarketing ?

[ Edited ]
Collaborator ✭ ✭ ✭
# 6
Collaborator ✭ ✭ ✭

They have changed the setup of a Display Network >> Remarketing campaign and now they display the option to select Dynamic remarketing. It seems that the default pricing is enhancedCPC and CPM is only a secondary option, but why then is in the presentation page that phrase ? Is all bidding done first at CPM level and then optimised for CPC only ?

 

dynamic-remarketing-setup.png

Re: What is the pricing model for Dynamic remarketing ?

Top Contributor
# 7
Top Contributor

@Adrian, II think you're reading too much into a simple choice of wording.  All Ads - including CPC and CPA - have a CPM figure because all Ads have a cost and a number of impressions, which is all you need to calculate CPM.  You'll have seen, surely, that "Average CPM" is an available column in your  AdWords interface and displays values for all Campaigns, even those that are Search/CPC only.

 

I honestly think this is just a choice of wording and not anything more complex.

 

Jon

 

 

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

Re: What is the pricing model for Dynamic remarketing ?

Collaborator ✭ ✭ ✭
# 8
Collaborator ✭ ✭ ✭

They basically say that the bid is for impression not for click , "optimal bid for each impression." is pretty clear to me. Maybe it will be corrected to "optimal bid for each click".

 

The CPM figure for CPC bidding is just a translation equivalence with a formula, not a bidding option. 

Re: What is the pricing model for Dynamic remarketing ?

[ Edited ]
Participant ✭ ☆ ☆
# 9
Participant ✭ ☆ ☆

Hi Adrian,

I just read the text again with the sentence :
Our real-time bidding algorithm calculates the optimal bid for each impression."

I is not strange they here are talking about the bid for each impression.
Before showing the ad, it goes to the auction. They are optimizing bids for the auction. So they are here talking about the calculation an optimal bid for the auction. That is the bid that gets an impression.

** I´am learning Adwords and find it very interesting.
** Ik ben Adwords aan het leren en vind het erg boeiend.

Re: What is the pricing model for Dynamic remarketing ?

[ Edited ]
Collaborator ✭ ✭ ✭
# 10
Collaborator ✭ ✭ ✭

There is a difference between my bid ( the MaxCPC value) and the price I pay which is the actual CPC or the average CPC if you look at multiple auctions for a keyword IF a click occurs AFTER the auction for an impression.

 

 

If I choose the CPC price model , then there is no calculation of my bid in the auction, there is only a calculation  for the Ad position for each impression and eligibility , what the ad slot is granted for my Ad if an ad slot is granted at all.  There is only positioning of the Ads based on my input and of the input of competition and all the QSs of course. They each pay only what the MaxCPC bellow them is +1 cent.

 

If there are only 2 bids in an auction, my maxCPC is 10$ and the next maxCPC is 1 $ and we compete, I pay 1$+1 cent and I am positioned first. However the next one pays his MaxCPC because there is no one bellow him, so there is no calculation for him.

 

The expression "calculates the optimal bid" means that my bid is changed for every impression , not that my ad is positioned differently according to competition.

 

The auction is explained here ( even if only for search campaigns at that time 2009 ):

 

http://adwords.blogspot.ro/2009/03/introduction-to-ad-auction.html

 

So the logic workflow is this :

 

1) In an auction ( an impression) the only decision is to position the ads according to MaxCPC values and QS.

 

2) If a click occurs after an auction,after decision 1, the next decision is to calculate the actual CPC for the click according to the MaxCPC bellow my position +1 cent. If no click occurs, there is no calculation of the actual CPC, there is not need to "calculates the optimal bid for each impression"

 

This is the way I understand things so far. Any corrections are welcome.