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Display Campaign CPC

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

This question was asked to me by an adwords user, but i do not have an answer and till now still pondering on the possible justification.

 

The Question: Why is the CPC for my Display remarketing campaign was higher / more expensive than my normal display campaign.

 

Appreciate if someone could shed some light.

 

Thanks & Regards

Vicky

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Accepted by topic author Vicky K
September 2015

Re: Display Campaign CPC

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# 2
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Hi @Vicky K the most likely answer is that it's down to targeting.  In a "normal" Display Campaign, the sites that are targeted by that Campaign are under the complete control of the Account owner (and/or decided by Google for automatic placements); in a Remarketing Campaign, at least part of the targeting is down to the sites the people on your list visit.

 

So, for example, let's say in a really simple (and unrealistic!) example, your standard Display Campaign targets only two domains, domaina.com and domainb.com.  Domaina.com has a typical CPC of $0.15 and domainb.com a typical CPC of $0.45.  In this imaginary world, the clicks are split evenly between the two so the average CPC is $0.30.  The Remarketing Campaign also targets these two domains, but the members of the list visit domainb.com more often than they do domaina, so there are more clicks from domainb and the avearge CPC is higher.

 

It could be argued that this is actually an understandable situation.  Sites that are more popular tend to have higher CPCs because there is greater competition to place Ads on those sites.  If they're more popular, it's logical the people on your list are likely to visit them more often.

 

Jon

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

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Vicky K
September 2015

Re: Display Campaign CPC

Top Contributor
# 2
Top Contributor

Hi @Vicky K the most likely answer is that it's down to targeting.  In a "normal" Display Campaign, the sites that are targeted by that Campaign are under the complete control of the Account owner (and/or decided by Google for automatic placements); in a Remarketing Campaign, at least part of the targeting is down to the sites the people on your list visit.

 

So, for example, let's say in a really simple (and unrealistic!) example, your standard Display Campaign targets only two domains, domaina.com and domainb.com.  Domaina.com has a typical CPC of $0.15 and domainb.com a typical CPC of $0.45.  In this imaginary world, the clicks are split evenly between the two so the average CPC is $0.30.  The Remarketing Campaign also targets these two domains, but the members of the list visit domainb.com more often than they do domaina, so there are more clicks from domainb and the avearge CPC is higher.

 

It could be argued that this is actually an understandable situation.  Sites that are more popular tend to have higher CPCs because there is greater competition to place Ads on those sites.  If they're more popular, it's logical the people on your list are likely to visit them more often.

 

Jon

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

Re: Display Campaign CPC

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hi Jon, thank you so much.