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High Avg. CPM in CPA based campaigns

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J w
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# 1
J w
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When I tried to exclude some poor placements in Display Network, I found that the Avg. Cpm is very high in some placements (up to 8.29$), higher than Cost/conv. (3.6$),
so 1. why this situation happens?
2. What decide the high or low price of Avg. CPM in CPA based campaigns?
3. How do you exclude the placements? You prefer to obey which parameters?

Thank you very much769F626C-C64C-431C-BA15-0799D24DDE16.png

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Accepted by topic author J w
January 2017

High Avg. CPM in CPA based campaigns

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# 2
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Hi @J W

 

In your case, the CPM is just the effective CPM, meaning, you aren't bidding for impressions on a CPM basis. It is being determined based on your impressions and cost.

 

CPM formula:

cost/impressions*1000

$299.17 / 30,067 * $1000 = $9.95 CPM

 

The reason why your CPA is less than your CPM is because your conversion rate is high enough to compensate for the CPM. If your conversion rate was approximately 3.6% or lower (for the first line item), then it would be roughly the same or higher than your CPM.

 

My rule of thumb is that I only worry about CPM if I am bidding on a CPM basis, which might only happen if it's a branding campaingn. However, if there is a direct response component to it, then I wouldn't worry about it. Be more concerned with whether the CPA meets or beats your target CPA.

 

Here is a link on how to exclude placements. https://support.google.com/adwords/answer/2454012

 

Best of luck.

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Marked as Best Answer.
Solution
Accepted by topic author J w
January 2017

High Avg. CPM in CPA based campaigns

Explorer ✭ ✭ ✭
# 2
Explorer ✭ ✭ ✭

Hi @J W

 

In your case, the CPM is just the effective CPM, meaning, you aren't bidding for impressions on a CPM basis. It is being determined based on your impressions and cost.

 

CPM formula:

cost/impressions*1000

$299.17 / 30,067 * $1000 = $9.95 CPM

 

The reason why your CPA is less than your CPM is because your conversion rate is high enough to compensate for the CPM. If your conversion rate was approximately 3.6% or lower (for the first line item), then it would be roughly the same or higher than your CPM.

 

My rule of thumb is that I only worry about CPM if I am bidding on a CPM basis, which might only happen if it's a branding campaingn. However, if there is a direct response component to it, then I wouldn't worry about it. Be more concerned with whether the CPA meets or beats your target CPA.

 

Here is a link on how to exclude placements. https://support.google.com/adwords/answer/2454012

 

Best of luck.

High Avg. CPM in CPA based campaigns

J w
Visitor ✭ ✭ ✭
# 3
J w
Visitor ✭ ✭ ✭

Hi David,

     I'm very grateful for your help. Your answer has completely eliminated my 

query. Thanks again!