Forum Moderators: martinibuster
what effect do you think this is going to have on adsense?
What interests me is WHY they did this. I am guessing it means that they aren't getting much interest in the CPM program, and hope this will at least get advertisers into it, who may then adjust their bids updward when they find they aren't getting much exposure? But I don't know.
Let's be honest -- most of the CPM networks are charging pennies not dollars. Google tried to elevate the going rate for CPM ads as it has already done for text ads but ran up against a raft of el cheapo competitors.
Though it's not a popular thing to say in this forum, Google has done more to raise the average price of an Internet text ad than anyone. It will be a little harder to repeat that trick in the CPM arena, given all the well-entrenched and very inexpensive competition.
My brief experiments with CPM ads on Adwords showed that it was a way to throw away a whole bunch of money in a very short time. Many of the sites I wanted to target had low CTR and high impressions to begin with. I had no control over whether the ads appeared in the nice visible spot above the fold or at the invisible spot at the bottom of two scrolled pages. Paying for an impression that was never seen.
The idea of site targeting appeals to me, but not CPM. I'd rather target CPC. Sure I would still want a general content network ad, but I would willing to bid higher on particular sites to make *sure* my ads appear there.
Maybe the change to the CPM bids make enough difference that I will try CPM again, when I'm next in the mood.
$2 (and even $1) for CPM ads was ridiculously overpriced
Depends on the sector and the site.
Remember, the CPM ads are site-targeted, not run-of-network. And in some sectors, even RON banners on a selected group of domains fetch much higher CPMs than Google's previous minimum of $2.
even RON banners on a selected group of domains fetch much higher CPMs than Google's previous minimum of $2.
Few and far between, as I'm sure you know. But anything for an argument, right? Obviously, Google learned that $2 for CPM wasn't competitive, so they lowered it to $1, which also kept them overpriced IN THE MAIN. I suspect the 25¢ "deal" will also get them little play. Mark my words: 10¢ within a year.
Unfortunately I don't think the ad matching system is transparent enough or has been tested long enough to have built up a high degree of trust among publishers that there can't be negative effects. Ways for advertisers to game the system, for example. Or situations where Google may allocate CPM campaigns in such a way that their earnings are maximized across the network, but individual sites could suffer a loss of revenue.
A friend has nearly 20 million adsense impressions per month. He is in the middle 3 digits per month. I guess advertisers would love to advertise on his site on CPM basis, just paying 1$ per 1000 impressions is too much.
Traffic per se isn't as important as the type and quality of traffic. That's why many trade and enthusiast magazines fetch high CPMs: they can deliver targeted audiences of real prospects, which is important if you're selling industrial widgets or hobby equipment as opposed to Coca-Cola or laundry detergent.
The online world is no different: Sellers of niche products and services are willing to pay more per 1,000 impressions for targeted audiences than for a general audience.
Few and far between, as I'm sure you know. But anything for an argument, right?
If the forum rules allowed it, I could reel off a long list of sites in my sector that fetch CPMs much higher than Google's current or previous minimums. And I have no reason to believe that the travel sector is unique.
Obviously, Google learned that $2 for CPM wasn't competitive, so they lowered it to $1, which also kept them overpriced IN THE MAIN. I suspect the 25¢ "deal" will also get them little play. Mark my words: 10¢ within a year.
Quite possibly, because Google will have trouble making inroads in profitable sectors where it faces competition from specialized networks and rep firms that have experience, contacts, and credibility with media buyers and advertisers. It's a lot easier to sell AdSense CPC ads to Internet direct marketers than it is to sell AdSense CPM ads to a Madison Avenue ad agency or the Elbonian Tourist Board.
Still, it's important to remember that the minimums are just that, and a 10-cent minimum doesn't mean all Google CPM ads are going for a dime (just as a CPC minimum of a nickel or a penny doesn't mean all CPC clicks are fetching pocket change).
Yes but many or most AdSense webmasters have carefully optimized their sites to generate the maximum amount of clickthroughs.
I think many in this forum have, but I don't know about the 'many or most' of the Adsense Webmaster have really optimized. I certainly rejected many sites in site targetting because they weren't.
My content network clickthrough has been .1% or lower on ads that have up to 10% CTR on search. So I don't think all Adsense Webmasters are of the caliber of those on this forum that get 8 or 15% CTR, etc.
If the forum rules allowed it, I could reel off a long list of sites in my sector that fetch CPMs much higher than Google's current or previous minimums.
Yes, and for every one you list, there are perhaps 1000 that don't come anywhere near that. Travel is one of the most competitive and pricey markets. We can argue all you wish - we all know how much you love to do it - but the reality won't change one iota. If $2 or $1 worked, Google would still offer it. I'm betting 25¢ will be ignored as well. That model is dead in all but some concentrated areas.
Yes, and for every one you list, there are perhaps 1000 that don't come anywhere near that.
That may be true (or nearly true), but so what? There's a whole spectrum of CPMs and effective CPMs on the Web, just as there is in traditional media. A photocopied zine, a community newspaper, or a weekly shopper doesn't earn the same CPM as THE NEW YORKER (with its prime demographics) or INSTITUTIONAL INVESTOR and FLYING (with their targeted audiences), so why should we expect anything different on the Web? Ultimately, the market pays what it thinks products are worth, whether those products are widgets or ad impressions.
Assuming it is though, I don't have a problem with it, because it can mean more revenue especially for lower priced segments where people may not have spent anything on cpm before.
FWIW, I just lowered my *default* CPM bid to ~GBP0.15, ie ~USD0.25. The system did not complain. Other bids are higher.
Rgds
Damon
That may be true (or nearly true), but so what?
The "so what" is that the higher price MINIMUMS didn't work. Google isn't going to make that kind of drastic change unless they felt the need to. The market didn't bear it, even in the sectors you keep hoisting up as the norm. But then, you'll argue any point until the horse is dead twice from the beating. Bet you're a ton of fun at dinner parties. LOL
The market didn't bear it, even in the sectors you keep hoisting up as the norm.
Guess you haven't been reading my posts. I don't hold up any sector as "the norm." I do wish other people wouldn't assume that their experiences represent universal truth.
Getting back to the topic of a new 25-cent minimum bid, all the change means is that Google isn't getting enough CPM ads across the network at a minimum bid of $2, which shouldn't come as a great shock. It's probably good news for publishers who are at the bottom of the EPC and eCPM scale, since they wouldn't have attracted ads at a CPM of $2 or even $1. Maybe they'll eke out a little more income now that CPM ads are available to them. (I wonder how long it will be until Google offers CPM ads on a run-of-network or run-of-category basis, maybe with "smart pricing" based on existing smart-pricing discounts to make CPM ads more appealing.)
(I wonder how long it will be until Google offers CPM ads on a run-of-network or run-of-category basis, maybe with "smart pricing" based on existing smart-pricing discounts to make CPM ads more appealing.)
I'm waiting for rather the opposite myself, site targeted CPC ads.
$.25 CPM minimum bid
I do a booming business selling $4 CPM banner ads (used to get $12 back in the day but I digress) so I think they're out of their mind letting it go as cheap as $0.25.
Is there a way we can block cpm ads from appearing to our website?
You have to write to support, which I did when the first Purple Pill ad showed up on my site, and they should be able to disable the CPM ads.
Otherwise you can just block the domain when you suspect someone targets your site with a CPM ad, which I suspect has been happening a lot.
all the change means is that Google isn't getting enough CPM ads across the network at a minimum bid of $2, which shouldn't come as a great shock.
So why have you jumped on my posts that make this SAME point? LOL As usual, you argue for argument's sake, only to eventually agree when the other person doesn't simply ignore your pontificating. All along I've written that it was a silly minimum, not even in the ballpark of the "going" rate, and that Google eventually realized that fact and dropped it (twice now). I don't blame them for trying it at such a high rate, but it was predictable that it would fail. I'm betting it still isn't low enough... not for a program like this one. The individual examples comparing this to tight niches in pricey markets was apples and oranges. Thanks for agreeing, eventually.
In my opinion, Google should let sites set their own minimum AdSense CPM rates. This way those who sell their own banners for $4 CPM can tell Google to only run CPM ads if they fetch $4 for the publisher.
I'm waiting for rather the opposite myself, site targeted CPC ads.
I'll bet a lot of advertisers would like those, too. It wouldn't be surprising to see them come eventually, since Google could make more money from them.
[edit]Forgot to add that when Microsoft enters the fray, I believe they'll kick the butts of the other 2. Might take a couple of years, but that's my prediction.[/edit]
Who would place $2 CPM for a site with an average eCPM of 0,25?
