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CPC or CPM Bid Method to Generate more Conversion on GDN

Follower ✭ ✭ ✭
# 1
Follower ✭ ✭ ✭

Hi All, need some suggestion or best practice about the bidding method on GDN.

Which is the best bidding method that generate more conversions on GDN? CPC or CPM Bid?

 

Thanks

2 Expert replyverified_user

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

Top Contributor
# 2
Top Contributor

Hello; 

That really depends on your gaols, and the type of service / product your are promoting.

If you are looking for conversions CPC is the targeting method, if you are looking for "brand exposure" CPM will deliver that.

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’

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

[ Edited ]
Collaborator ✭ ✭ ✭
# 3
Collaborator ✭ ✭ ✭

To make a uniform comparison we would have to compare how CPC and CPM prices are for 1 placement.

 

If you get less than 1 click for every 1000 impressions with a CPC campaign it is worth to change it to a CPM campaign because the CPM price will be cheaper.

 

CPM / CPC = CTR X 1000 so if your CTR is 0.1 % which equals to (1 /1000) than 

 

CPM / CPC = 1 , they become equal, and as CTR lowers like 0.05 % , the ratio becomes 

 

CPM/CPC = 0.5 = 1/2 , which can be 5$ / 10$ , meaning that in this case CPM is cheaper.

 

My advice would be to start with a CPC campaign and than move the placements with constant less than 0.1% CTR in a CPM campaign.

 

[Later edit] I have found very rare placements where the CPM price would be lower than the CPC price, especially since you can restrict impressions per user , per day in order to avoid showing your ads 1000 times per day to the same user (browser with the same cookie)

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

[ Edited ]
Participant ✭ ☆ ☆
# 4
Participant ✭ ☆ ☆

Hello RyanBatchin and Adrian,

You can restrict impressions per user in display campaigns, so it also works with CPC.
I think the most important thing is how you set up your campaign, ads, targeting in combination with your website. You must  than optimize it for conversions.

Before taking part In the auction Adwords converts/recalculates CPM bid to a CPC equivalent. So for costs it does not matter. You are seeing an other metric you have to work with yourself.

CPM is nice when you are familiar with to CPM bidding, or if you use it in other campaign systems that works with CPM. Than it is more easy to compare data and see which system is most effective to bring you clicks and conversions.

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

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

[ Edited ]
Collaborator ✭ ✭ ✭
# 5
Collaborator ✭ ✭ ✭

With CPM he will get very rare clicks / visits , so he will not be able to measure conversions by tracking it from the website. However if he places a unique phone number in his ads (not used in any other pages) , he can measure how many calls he gets from the CPM banner , and with the help of a smartphone he can automatically record all the calls and export the call-log to Excel. It is a manual conversion tracking, but it works.

 

This is a nice infographic showing that adwords is a good choice for the CPC campaigns in the GDN as the average CTR is 0.4 %

 

http://goo.gl/qDB0Am

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

Collaborator ✭ ✭ ✭
# 6
Collaborator ✭ ✭ ✭

This is a nice study comparing the two methods and showing that CPM gets you less clicks.

 

http://goo.gl/dOM1K

 

For both methods you can use the feature to "exclude ads below the fold", as described here, to improve the visibility and CTR, because it seems that impressions do get incremented even if the ad is way low on page and the user does not scroll enough to see it. Every page load counts as an impression, no matter how long the page is on the vertical, and some of them are stuffed with ads from many sources :

 

http://www.google.com/ads/innovations/abovethefold.html

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

Participant ✭ ☆ ☆
# 7
Participant ✭ ☆ ☆

Hello Adrian,

Maybe you forget the publisher and visitors behavior. when you advice to activate "exclude ads below the fold"

The publisher has the data which works best on his page, and can do test which works best. Or placements of ads  has something to do with the lay-out of the website, that influences what is the best space for the ad.


Try to think as a publisher. The goals for the publisher and advertiser are almost the same. Only the publisher can optimize only for clicks. Not for conversions from the advertiser  He has to optimize his webpage. Write and make content that has the most value for visitors. Ant the optimize content to get the most relevant ads. So relevant visitors can click on relevant ads.

 

The publisher has to optimize the page, and put the ad(s) on the best space on the webpage, that works.

That could be beneath or under text or anywhere, and this could be under the fold.

 

It does not always mean that under the fold is bad. Maybe visitors that did read all the content to the  bottom, are very engaged. And when they click on the at the ad on the bottom of the text, that could be the most engaged visitors.

 

Did you read the article you are referring to well?
http://www.ppchero.com/is-cpm-bidding-a-waste-of-your-money/
There is written under the third datapicture:
the impressions that are theoretically more valuable (above the fold) don’t perform as well. That holds true across both CPC and CPM campaigns – CTR and View Through Conversions are both a lot better below the fold.

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

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

[ Edited ]
Collaborator ✭ ✭ ✭
# 8
Collaborator ✭ ✭ ✭

Excluding the "below the fold" category ensures you that your ads occupy the top slots in the page if they are available above the fold.

 

It is like chosing to have your ad displayed in the "top of page" category for the search ads instead of "anywhere because all positions perform the same".

 

I do not see how they could have compared how their ads performed on the same placement below the fold or  above the fold since in my experiments I can read data only in these situations :

 

a) Below or above the fold,it is unknown how many times each, depending on the bid on that placement, I do not see how many times the ad is in the banner no 3 on the bottom of the page or in the banner no 1 on the top. There is no ad preview tool for the placements.

 

or

 

b) Above the fold, when I enable the exclusion, I make sure that the banner or text Ad is in the "visible" part of the page.

 

You can look however on the slot position for clicks in the analytics, and more than 70% of the GDN clicks come from slots 1 or 2 ( wherever those ad spaces are placed, below or above the fold) .

 

I guess it depends on the placement and the type of visitors it attracts. If it is a blog and the comments run 10 pages down , a visitor might enjoy the comments and at the same time may exit the site through a "below the fold ad".

 

As in many situations, the only solution is testing with 2 ad groups , same placements , one with the setting enabled, one with the setting disabled, same ads, same bids.

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

Top Contributor
# 9
Top Contributor
Hi Ryan,

Aside from the somewhat esoteric conversation here, CPM campaigns are usually for branding, when direct sales are not expected. CPC campaigns are generally used for direct response type ads.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords

Re: CPC or CPM Bid Method to Generate more Conversion on GDN

Participant ✭ ✭ ✭
# 10
Participant ✭ ✭ ✭

Interesting question, jumping in here..

 

Adrian claims: "If you get less than 1 click for every 1000 impressions with a CPC campaign it is worth to change it to a CPM campaign because the CPM price will be cheaper."

 

I can´t see the argument here really. It must be really dependent upon your cpc and cpm bid, must it not?

 

I can think of at least one situation when you´d prefer cpm-bidding: when you have a much lower ctr than your competitors, and thus your ad is seldom shown (because Google fear it till get very few clicks, thus making them no money). As cpm-bidding disregards ctr, you could turn it in and have your ad shown more often.