How do cost-per-click (CPC) ads compete with cost-per-thousand impressions (CPM) ads on the Google Display Network?

How do cost-per-click (CPC) ads compete with cost-per-thousand impressions (CPM) ads on the Google Display Network?

How do cost-per-click (CPC) ads compete with cost-per-thousand impressions (CPM) ads on the Google Display Network?

  1. CPC bids are effectively converted to CPM bids
  2. CPM bids are effectively converted to CPC bids
  3. Ads using CPC bids are not allowed to compete on the Display Network
  4. CPC and CPM bids only compete against bids of the same type

The Correct answer is:

  • CPM bids are effectively converted to CPC bids

 

Explanation

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

Udit Khanna

Udit Khanna is a Digital Marketing Course professional at Expert Training Institute, an expert in Digital Marketing, Search Engine Optimization, Pay Per Click, Social Media, etc. who helps companies attract visitors, convert leads, and close customers. Previously, Udit worked as a marketing professional for various startups and tech companies. He graduated with B.Sc from IGNOU with a dual degree in Business Administration (Marketing & Finance).

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