{"id":1727,"date":"2017-09-02T10:34:44","date_gmt":"2017-09-02T10:34:44","guid":{"rendered":"http:\/\/www.certificationanswers.com\/?p=1727"},"modified":"2018-05-18T16:09:03","modified_gmt":"2018-05-18T16:09:03","slug":"how-do-cost-per-click-cpc-ads-compete-with-cost-per-thousand-impressions-cpm-ads-on-the-google-display-network","status":"publish","type":"post","link":"https:\/\/www.certificationanswers.com\/en\/how-do-cost-per-click-cpc-ads-compete-with-cost-per-thousand-impressions-cpm-ads-on-the-google-display-network\/","title":{"rendered":"How do cost-per-click (CPC) ads compete with cost\u2013per\u2013thousand impressions (CPM) ads on the Display Network"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">How do cost-per-click (CPC) ads compete with cost\u2013per\u2013thousand impressions (CPM) ads on the Display Network<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"color: #008000;\"><strong>CPC bids are effectively converted to CPM bids<\/strong><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"color: #000000;\">CPM bids are effectively converted to CPC bids<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>Ads using CPC bids are not allowed to compete on the Display Network<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>CPC and CPM bids only compete against bids of the same type<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Explanations:<\/p>\n<p><span style=\"font-weight: 400;\">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\u2019s eCPM, or effective cost per impressions. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">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\u2019re 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Read more here: <\/span><a href=\"https:\/\/support.google.com\/adwords\/answer\/2630842?hl=en\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/support.google.com\/adwords\/answer\/2630842?hl=en<\/span><\/a><\/p>\n<div class=\"answer-intro\"><\/div>\n<p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" title=\"How do cost-per-click (CPC) ads compete with cost\u2013per\u2013thousand impressions (CPM) ads on the Display\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/bso-eR6gdr0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; How do cost-per-click (CPC) ads compete with cost\u2013per\u2013thousand impressions (CPM) ads on the Display Network &nbsp; &nbsp; CPC bids are effectively converted to CPM bids &nbsp; CPM bids are effectively converted to CPC bids &nbsp; Ads using CPC bids are not allowed to compete on the Display Network &nbsp; CPC and CPM bids only [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[32],"tags":[],"class_list":{"0":"post-1727","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-google-adwords-fundamentals","7":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - 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