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CPC Vs CPM

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# 1
Follower ✭ ✭ ☆

Hi Everyone ,

 

Greetings!

 

I have a question which is as follows,

 

Is it possible to run two exactly similar campaigns one in CPM and the other one in CPC , compare the two ROIs and then continue with the one which gives lower cost/conversion.

 

Thanks

Ankit

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Accepted by topic author Ankit
September 2015

Re: CPC Vs CPM

Top Contributor
# 4
Top Contributor

Hi Ankit,

 

I think you should first understand that you can only run a CPM campaign on the Display Network; CPC can be employed on all networks.  It would be difficult, IMO, to compare a GDN campaign with a Search Campaign and I don't think you intend to only run campaigns on the Display Network, but I could be wrong. 

 

Generally speaking, if you have an established 'value' for a conversion (which would be needed to accurately determine ROI), chances are you will see a better ROI on Search given that your audience will already be looking for your product/services and perhaps is already in the buying cycle VS a CPM GDN Campaign.

 

Can it be done as you have expressed, yes, and it is highly recommended to run separate Search and Display Campaigns as they are very different in nature.  I think you may find that they could compliment each other quite nicely. 

 

Hope this helps!

 

-Tom

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
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Re: CPC Vs CPM

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆

Hi Ankit,

 

Yes, you can run two exactly similar campaigns one in CPM and the other one in CPC , compare the two ROIs and then continue with the one which gives lower cost/conversion.

 

If your main goal is to have people visit your website, then clicks (CPC) are a good place to start.

If you're mostly interested in getting your name or logo in front of lots of people, then CPM is a smart option.

 

Thanks

Brijesh

Re: CPC Vs CPM

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hello Ankit,

I'm totally agree with Brijesh Sharma. He is saying right.

CPM is only for branding & If you want to sell something then go with CPC.
Marked as Best Answer.
Solution
Accepted by topic author Ankit
September 2015

Re: CPC Vs CPM

Top Contributor
# 4
Top Contributor

Hi Ankit,

 

I think you should first understand that you can only run a CPM campaign on the Display Network; CPC can be employed on all networks.  It would be difficult, IMO, to compare a GDN campaign with a Search Campaign and I don't think you intend to only run campaigns on the Display Network, but I could be wrong. 

 

Generally speaking, if you have an established 'value' for a conversion (which would be needed to accurately determine ROI), chances are you will see a better ROI on Search given that your audience will already be looking for your product/services and perhaps is already in the buying cycle VS a CPM GDN Campaign.

 

Can it be done as you have expressed, yes, and it is highly recommended to run separate Search and Display Campaigns as they are very different in nature.  I think you may find that they could compliment each other quite nicely. 

 

Hope this helps!

 

-Tom

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

Re: CPC Vs CPM

Top Contributor
# 5
Top Contributor

Hello Ankit,

 

Tom is absolutely right here. First thing for you to understand is how these 2 different bidding strategies work and what is the difference between them and on what networks you can run them.

 

CPM (Cost per thousand Impressions) is only intended for Google Display Network as Tom said. Read this for more details.

 

If on one hand, Google Display Network will give you consumers who are more into branding and the search criteria for them is indirect, then on another hand, Google Search Network is intended to focus on direct consumers who are looking for your products and services. They search, they click and they convert in simple language. But that's not the case for Google Display Network. It takes time until you have a very strong branding.

 

As far as best practices are concerned, you should run Google Display and Google Search Network separately in order to get the best ROI.

 

Just a thought!

Pankaj

Re: CPC Vs CPM

Follower ✭ ✭ ☆
# 6
Follower ✭ ✭ ☆

Thanks Guys, now i understand CPM/CPC much bettter.

 

Ankit