How do cost–per–click (CPC) ads compete with cost–per–thousand impressions (CPM) ads on the Google Display Network?
- CPC bids are effectively converted to CPM bids
- CPM bids are effectively converted to CPC bids
- Ads using CPC bids are not allowed to compete on the Display Network
- CPC and CPM bids only compete against bids of the same type
How do cost–per–click CPC ads compete with cost–per–thousand impressions CPM ads on the Google Display Network
When CPC and CPM ads compete for the same Display Network placement, adwords uses eCPM to compare ad rank. AdWords converts CPC to ECPM ( CPC equivalent bid) Google estimates how many clicks the ad might receive in 1000 impressions to get the comparison, the resulting figure is the ad’s eCPM, or effective cost per impressions.
To keep things fair, when CPC and vCPM ads compete for the same Display Network placement, the two types of ads are compared apples-to-apples on how much they’re effectively willing to pay for the impression. With a vCPM ad, the max viewable CPM bid represents how much the advertiser is willing to pay for each 1,000 viewable impressions; with a CPC ad, Google estimates how many clicks the ad might receive in 1,000 impressions to get the comparison.
Read more here: https://support.google.com/adwords/answer/2630842?hl=en
Many advertisers hope viewers will click their ad — but that’s not always the main goal. Maybe you just want a lot of people to see your ad. In that case, bidding by cost-per-thousand viewable impressions (vCPM) is a good way to go. With vCPM bidding, you bid for your ad based on how often it appears in a viewable position on the Google Display Network. You set the max amount you want to pay for viewable ads, whether they’re clicked or not.
Why use vCPM bidding
Some people prefer vCPM bidding because they want to be able to set a maximum amount they’ll pay for each time their ad can be seen, or each viewable impression, instead of for each click.
vCPM bidding is unavailable for the “Search Network only” campaign types.