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change to CPM from CPC

am
Follower ✭ ☆ ☆
# 1
am
Follower ✭ ☆ ☆

Hi,

 

Can anyone share his/ her experience of switching from CPC bidding to CPM? My current setting is CPC and I can see average CPM in the placement report. I am confused about two things:

 

1. Even though average CPC is similar across different placements, the average CPM varies dramatically. So if I switch to CPM, performance may vary significantly across different placements. How can I control CPM at placement level?

 

2. How does the system behave when we switch from CPC to CPM by using the same average CPM. So for example, let us say my current Max CPC is 15 and average CPC is 10. In this setting, average CPM is 7. If I switch to Max CPM of 10 (to account for average CPM of 7), will my performance remain the same? In other words, if the average CPM is same in CPC setting vs CPM setting, will the performance be same or different?

 

Thanks

 

am

Marked as Best Answer.
Solution
Accepted by Karl (Explorer ✭ ✭ ☆)
September 2015

Re: change to CPM from CPC

Top Contributor Alumni
# 2
Top Contributor Alumni

Hi am,

 

Generally I would only use CPM bidding for a branding campaign, not for getting sales or enquiries.

 

You didn't mention what the campaign goals were so I cannot give you too much help. If you give us a bit more detail I'll try to give you a bit more.

 

On this page under CPM bidding it says the following:

Focus on impressions with manual CPM bidding

Manual bidding for impressions, also known as CPM bidding, lets you control the visibility of your ads by adjusting your maximum CPM bids.

Here are some cases in which we'd recommend manual CPM bidding:

  • Your campaign only targets the Display Network, not Google search or the Search Network.
  • Your ads are designed to increase awareness, but not necessarily generate clicks or traffic.
  • You prefer the traditional industry metrics of CPM (cost-per-thousand impressions) campaigns.
  • You're targeting particular placements, not just keywords. (Combined with placement targeting, bidding for impressions can help ensure your ads appear to a specific audience that will be interested in your ads.)
  • You're mainly interested in increasing brand awareness. Image ads and other multimedia formats often serve that purpose best, and these ad formats run on the Display Network.
  • Your message is in the ad itself, so you don't need people to click through to your site. This may apply to events (such as a television premiere) or political advertising.

Manual CPM bidding probably isn't for you if the goal of your campaign is a direct response from customers, like buying a product or filling out a form.

 

Re: change to CPM from CPC

Participant ✭ ✭ ✭
# 3
Participant ✭ ✭ ✭

Hi am

 

1) You can add it as a managed placement and change your cpm-bid for that placement

 

2) Hard to say how the system would react, but if your CTR is really good it could be that you get a lot more clicks for your money when switching to CPM. It CTR  is not that godd you will loose money in comparison with CPC
(the calculation for this is cpc*ctr*1000)