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What is Avg CPM? in CPC based Campaign

Explorer ✭ ✭ ☆
# 1
Explorer ✭ ✭ ☆

If I add Avg. CPM column  in Adgroup level or Ad level then what is the the meaning of Avg. CPM.

1 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Pushpendra
September 2015

Re: What is Avg CPM? in CPC based Campaign

Top Contributor
# 4
Top Contributor
HI,

This is not the same cost that you pay when you run the campaigns in CPM bidding.
The adwords is only showing you the Calculation of avg CPM, that does not mean that you have that CPM if you run the campaigns on CPM Bidding.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

View solution in original post

Re: What is Avg CPM? in CPC based Campaign

Top Contributor
# 2
Top Contributor
Hi Pushpendra,

It is the general concept of CPM. The average amount that you've been charged for 1,000 impressions.
But in the CPC campaigns Google also show you the calculated avg CPM, to understand the avg CPM that you have charged in the form of avg CPC.

e.g.
Your campaigns
Avg CPC = $2
Impression:-10,000
Click:-200
Your cost:-200*$2=$400
So your avg CPM= 400/10,000*1000=$40
So adwords is showing you that your avg CPM of your campaigns=$40
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: What is Avg CPM? in CPC based Campaign

Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆

Thanks for reply.

 

Calculation I got, but what about cost is this cost for pay or it is the same cost if I run the campaign for CPM.

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

Re: What is Avg CPM? in CPC based Campaign

Top Contributor
# 4
Top Contributor
HI,

This is not the same cost that you pay when you run the campaigns in CPM bidding.
The adwords is only showing you the Calculation of avg CPM, that does not mean that you have that CPM if you run the campaigns on CPM Bidding.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: What is Avg CPM? in CPC based Campaign

Explorer ✭ ✭ ☆
# 5
Explorer ✭ ✭ ☆

Then why google show the msg "The average amount that you've been charged for 1,000 impressions." when I click on ? mark at top of Avg. CPM column.

Re: What is Avg CPM? in CPC based Campaign

Badged Google Partner
# 6
Badged Google Partner
Because that's the help description for that column.

You are NOT charged per thousand impressions when using CPC bidding. Your avg. CPM could be $0.00, if you get thousands of impressions and no clicks.
Tom