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Premium Sponsorship Vs Google AdWords Select
Which is better if I can afford $15,000 in 3 months?

 3:56 pm on Nov 17, 2002 (gmt 0)

The situation:

1) I can afford to spend $15,000 in 3 months (atleast theoritically!)
2) I cannot afford to pay more than $0.05 per click.
3) My AdWords CTR for my keywords is anywhere between 6% and 10%
4) Each of my keywords has zero Premium Sponsorship ads but 4 to 5 AdWords Select ads.

I am assuming that I will be able to get atleast 10 to 15% CTR for my Premium Sponsorship ads.
To be noted: Premium Sponsorship ads are charged per CPM.

Considering the above situation, would it make sense to upgrade to Premium Sponsorship? Or should I stick to AdWords Select?



 6:08 pm on Nov 17, 2002 (gmt 0)

Did you do the math? Which has the best ROI in your "best case" results? If you can afford it and don't think you will take a bath, set up an experiment where you test it out for three months and see what happens.

Are there two very similar keyword phrases that you have that usually have a similar return with AdWords? Or could your work on that so you do? Then, do Premium Sponsorship with one and AdWords with the other. It would be one way to test this for yourself.


 6:22 pm on Nov 17, 2002 (gmt 0)

To do the math, I need to know the cost per 1000 impressions. How much does Google charge per 1000 impressions? Is it a fixed rate or does it depend on the keywords I select?

I am hoping that I will be paying around $10 CPM and with an expected CTR of 20%, it works out to be $0.05 per click :)

Testing of Premium Sponsorship is difficult with such a huge minimum investment requirement.


 9:33 pm on Nov 17, 2002 (gmt 0)

You will NOT get CPM (1000 impressions at $10)

What makes you think that CTR will be 20%?

Minimum I think you will be looking to pay for 1000 impressions is around $30, a lot higher if its a competetive keyword.

$50 > $75 is quite common.



 9:56 pm on Nov 17, 2002 (gmt 0)

Minimum I think you will be looking to pay for 1000 impressions is around $30

Decision made. I will stick to Google AdWords Select.

I have reasons to believe that I will easily get 15 to 20% CTR with Premium Sponsorship. (Why is that surprising? Is 20% CTR unreal?)

Reason No.1 -> My current adwords campaigns are cruising at 6 to 10% CTR. And there are 4 to 6 competitors per keyword

Reason No.2 -> There are no Premium Sponsorship ads as yet.

Reason No.3 -> The search results for my keywords are irrelevant. Yep.. I am talking about Google search engine here.. and I don't intend to complain to Google about irrelevancy of the search results :)


 10:38 pm on Nov 17, 2002 (gmt 0)

Reason No.3 -> The search results for my keywords are irrelevant. Yep.. I am talking about Google search engine here.. and I don't intend to complain to Google about irrelevancy of the search results

Surely in the above scenario, the trick is to Notify Google to get the "so called" irelevant results removed.....

...then use traditional SEO (non paid) to be number 1 or high up in the serps for quality targeted traffic.

definately cheaper than $15,000 in my opinion.



 4:16 am on Nov 19, 2002 (gmt 0)

You will NOT get CPM (1000 impressions at $10)

Don't believe everything you read vibgyor79. $10 CPMs are possible on some very good keywords.

The problem is that you say you can't afford more than $0.05 per click. Even at a $10 CPM and a CTR of 15% (20% is not unreal but not very likely - the increase in CTR when moving up to the Premium spot depends on how well the AdWords campaign was run), you're paying more than the $0.05 that you can afford. AdWords is probaly better for a small budget. Or, you may want to consider spending the money at a couple of the cheaper CPC engines.


 7:50 pm on Nov 19, 2002 (gmt 0)

Thanks Vukovic. I think I will contact google directly for the prices for my keywords. Since all my keywords have a minimum CPC (adwords) of only $0.05, I hope I can get some good deals with Premium Sponsorship too!


 9:11 pm on Nov 19, 2002 (gmt 0)

Do keep us informed as to your progress.

I hope you can get the CPM rate that you are looking for, but somehow doubt it.



 7:18 am on Dec 5, 2002 (gmt 0)

Sorry for the late post here, but just found the thread. I've got both Premium and Adwords campaigns going currently. I "graduate" campaigns to premium when I see that the "effective CPM" of a positive ROI Adwords campaign is comparable or higher than the Premium actual CPM. For instance, an Adwords campaign might get 1,000 impressions and 100 clicks at $0.50/click for total cost is $50. That's a $50 effective CPM. If the campaign is returning a positive ROI at that rate, than it should be graduated to a Premium Campaign ($30-50CPM is typical).

Re clickthru rates: I see higher CTRs and overall conversion rates on Premium, but not astronomically. Maybe a 10-20% improvement. I plan for no improvement so that when the return is actually better my boss thinks I'm a genius!


 3:50 pm on Dec 5, 2002 (gmt 0)

An update:

I have been offered $15 CPM for my keywords if I sign up for a one year contract. The cost is much higher if I sign up for 3 or 6 months only.

$15 for 1000 impressions... 50 percent more than what I had expected :)

Camster: When you graduate your campaigns to Premium, what do you do with your AdWords ads? Pause them? Keep 'em running?


 4:43 pm on Dec 5, 2002 (gmt 0)


That's a decent price. I'll have to bang on my rep for a better deal!

I keep both Premium and Adwords running simultaneously. We still see pretty healthy activity on the Adwords even with the Premium running, since Premium campaigns are not distributed to Google's partners--or at least not as widely as Adwords. Also, if there's ever a hiccup with either system (as there was last month), you're covered with the other campaign.

Make sure that your rep knows you've got both running and that they set the campaigns not to display duplicate results.



 6:29 pm on Dec 8, 2002 (gmt 0)


any chance of sharing the following information with us:

1, Number of expected searches per year.
2, I take its NOT a VERY competitive area, as CPM rates go for up to $75, with many advertisers on the waiting list, awaiting ANY inventory.

also is this for position 1 or 2?



 7:09 pm on Dec 8, 2002 (gmt 0)

1) 3.33 million impressions to be delivered in 12 months
2) You are right. There are no Premium Sponsorship competitors.

Since there are no premium sponsorship advertisers, I'm assuming that this is for position 1.

The CPM rates vary between $15 to $30 depending on the duration of the proposed contract.

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