High Avg. CPM in CPA based campaigns[ Edited ]
January 2017 - last edited January 2017
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 much
High Avg. CPM in CPA based campaigns
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.
$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.