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Google Adwords Placement Targeted CPM vs CPC
Friday, 10 October 2008 12:27

When Google first launched Site Placement options we were cautious.  At the time, the only way to advertise was on a CPM model.  As a rule, We dislike CPM advertising as there is no guarantee of performance.  However, we tried it with smaller budget allocations. It turned out the click through ratios translated to an acceptable CPC. So, over time, we continued to increase our spend, and refine our campaigns utilizing text ads and a plethora of image ads.  In some instances we found that the image ads performed better than text ads.  This, of course, is very curious as text ads typically perform better than traditional banners.  However, it depends on the product, ad creative, the site topic, design and ad placement.  As a rule of thumb we avoid showing CPM ads on any site that put their Google Ads in the footer, or below 600 pixels.  But, given the wide range of sites available to choose from in Googles content network, we usually select "all" then monitor and weed out under performing sites. In short, Google's site placement advertising was effective even though it used a CPM model.  The key, as with most online advertising, is daily monitoring and adjustments.

Since Site Placement launched, Google combined the function into the regular CPC keyword targeted campaign tools.  Now, they are one. This is a nice feature. They also added the function of using CPC vs CPM marketing.  The choice is up to the user. This, we prefer as now the campaigns are tied to performance. No click, no cost.  This is good as we have seen a 100% increase in the cost per cpm on some sites we specifically target. What used to cost $2.00 per CPM now costs $4.00 and up. Unfortunately, clicks have remained flat. Fortunately, Google now allows CPC site placement targeting. So, now, we prefer to use CPC marketing. In some instances have seen a 60% savings in costs. Additionally, we no longer have to manually review each site to see where they put their Google Ads. If the ad is in the footer, it does not matter.  We do not pay unless there is a click.  This, obviously, is best as it puts responsibility on the publisher to place the ads in better positions if they expect to earn a share of our advertising dollars.

So, at this juncture, we are advising all trainee-clients and readers to take the time to review and convert their CPM  site placement ads to CPC.

Note: In some instances we have found that certain ads are not getting any visibility on sites when restricting site placement ads to a cpc model.  If the site in question is highly targeted and relevant to our advertising topic, we will still use the CPM model.  But, we do so cautiously and with daily, if not twice daily, monitoring.

 

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