Forum Moderators: martinibuster
It seems unlikely that "smart pricing" would be applied to CPM ads, for two reasons:
1) "Smart pricing" is based on the likelihood of a click turning into a conversion (as estimated by Google). CPM ads aren't necessarily designed to stimulate clicks or result in conversions; the advertiser's goal may be to build brand awareness.2) Advertisers pick the sites where they want their CPM ads to run, as opposed to taking potluck from Google as they do with CPC ads.
Wrong!
1) "Smart pricing" is based on the likelihood of a click turning into a conversion (as estimated by Google). CPM ads aren't necessarily designed to stimulate clicks or result in conversions; the advertiser's goal may be to build brand awareness.
On what exactly are you basing you theory? how can you explain clicks on same pages one day worth $2.5 and $0.04 the next. I don't think anyone know how smart pricing really work except for a handful of PHDs at the plex (maybe LOL).
Smart pricing WILL be applied to the CPM model big time and the Reasons as follow:
Imagine an advertisers bidding $5 per 1000. The advertiser want eyeballs looking at his/hers banner. What would happen if publishers place the banner way down the page, right under or above the footers. How will the system be able to determine the effectiveness of the banner without first comparing click through rates across the network? the lower the CTR the more it indicates that the banner is “hidden”....CPM price will be adjusted automatically by smart pricing to accommodate for bad banner placement and there you have it, CPM payout according to performance (gauged by the amount of CTR).
IMO, if anything, "smart pricing" will be applied to the CPM model even more than the CPC model.
Wait and you shell see.
Those of you who are happy with $2.00 CPM should look to other networks. $4.00 per 1000 is the industry average nowadays.
I will put the CPM banners at the bottom of my site and then..?
And then I won't target your site.
Jenstar, the mod, said it's already in place. I didn't know anything about it myself, might have slipped up on us?
In my field, the industry average is $12-$24 CPM, not $4.00. My private advertisers pay over $10.00.
I don't know, say it is already in place, it must be using smart pricing. That might be part of the reason why my eCPM has gone up. If it's already in place, smart pricing must also be in effect, otherwise, I think I'd be seeing lower eCPMs.
When did jenstart say this? I thought they were just testing so far.
"Site targetting is not generally available as of yet, ownerrim. I think you're just seeing some testing.
AWA"
"The CPM has started already. "
I don't understand. How could smart pricing not come into play with PI ads? Those 1000 visitors are worth a certain dollar amount, depending on your site's performance.
First, CPM doesn't refer to cost per 1,000 visitors; it means cost per 1,000 impressions.
Second, "performance" for CPM ads doesn't necessarily mean the same thing with CPM ads as it does with CPC ads. Some advertisers will be looking for clickthroughs and conversions, but others--possibly the majority--will be looking to build brand awareness, as they do when they buy ads on TV, in magazines, or on the radio. Take a topic like cruising: A cruise-travel agency might buy CPC ads to generate leads, but a cruise line (which normally doesn't sell direct) might buy CPM ads on selected cruising and travel sites so that readers will think "Viking" instead of "Uniworld" or "Silversea" instead of "Seabourn" when they're ready to plan a cruise.
Third, as others have pointed out in this thread, the advertisers will choose the sites where their CPM ads can run, so they won't need smart pricing in the same way that they do with CPC ads.
Not according to adwords advisor. And there's nothing in the adwords forum to indicate any of this has gone live.
>And then I won't target your site.
I will first put the banner at the top, and you will target my site, and I will put it at the bottom, and you are too busy [you have over 100 sites to check!], and .. that's what's gonna happen.
Most of us are probably thinking that we'll just switch to CPM ads and suddenly get some kind of real income.
What makes you think we have the option of choosing between cpc and cpm campaigns? As far as I understand it, Google will target the highest bidding ads be they cpc or cpm. I don't recall them saying we would have a choice, and what's more I don't think we are going to get any reports to see how they perform either!
I emailed them a while back about the issue of reports, and they said they had no current plans to do different reports for cpc/cpm/targetted. They will jumble them all up in the existing reports.
I emailed them a while back about the issue of reports, and they said they had no current plans to do different reports for cpc/cpm/targetted. They will jumble them all up in the existing reports.
Let's suppose I am testing whether to select "text" vs. "image" as my google_ad_type. That is, suppose I am testing whether to go with contextual CPC ads only vs. a mix of CPC and CPM ads. I am also trying to track results using channels.
If Google jumbles the data all together, how will I be able to use that data to guide my decision?
You might say that the all-knowing Google will make an attempt, on the fly, to serve the ad type that maximizes my revenue. But there are other non-monetary considerations, like
--aesthetics: how will one ad type vs. another, and certain ad sizes and shapes vs. other ad sizes and shapes, affect my sites' appearance?
--ad blindness
--image: do I want "purple pill" ads appearing on any of my sites?
--respect for the attitudes and sensibilities of my site visitors
and so on.
I want to track the data, consider all factors, and make my own decisions, not have Google narrowly decide for me. How will jumbled data help me do that?
I got one website that does horrible with contextual ads, .50 cents per CPM, so $2/cpm would be a nice increase.
I'm not sure it will work like that though - the $2 is a maximum bid that the advertiser is willing to pay for 1000 impressions; and if nobody else is targeting your site Google would probably work it out so that you earn 51 cents for those 1000 imps and everybody's happ(ier).
>> And then I won't target your site.
> I will first put the banner at the top, and you will target my site, and I will put it at the bottom
And then i'd get fed up with the CPM ROI from your site, drop you, and you'd have nobody to replace me becuase when the next prospective advertiser that might have liked to target your site comes along they wouldn't be interested because you were currently serving the ads at the bottom trying to pull a fast one on me.
Of course there are situations when I would be happy to target a site with a bottom placed ad where that add was at the bottom of lots of great, relavent content.
However, if i'm going to target the made for adsense site that has #1 for my keywords through virtu of its owner's SEO skills and personal pagerank network then the ad will almost certainly be and will almost certainly stay prominently positioned because:
a) That's how (s)he makes money from their M4A SEO'd site.
b) To attract potential advertisers into a CPM bidding frenzy on their site.
"If Google jumbles the data all together, how will I be able to use that data to guide my decision?"
You have to keep track of your own data. Google can't hold your hand the whole way. Collect data, make small changes at a time and channel them... You'll get it figured out.
And a visitor may view one page or several pages, affecting the number of impressions shown.
they had no current plans to do different reports for cpc/cpm/targetted. They will jumble them all up in the existing reports.
That's what I was afraid of.
I'm lucky enough to be able to switch to ad formats that don't support the CPM ads, and I'm probably going to do that.
I can put up with the terrible look of the PSAs in a PSA, but I'm not interested in having the extended text style of the PSA ads on my site any more than I do now.
Image ads are out for me. Most of my pages are already image heavy because of the widget photos on them. I won't load them up with image ads from Google at the price of slowing the load time anymore than it is.
How do you block CPM?
CPM ads only work on some of the adblock sizes, I believe those are 120x600, 160x600, 336x280 (not sure about this one), 300x250, and 468x60.
I use a lot of 300x250 adblocks, which would accept a CPM ad. I could change those to 250x250 adblocks, which don't accept CPM ads.
I'd have to give up 1 ad per block going from the 300x250 to the 250x250, I can live with that.
This obviously isn't an option for everyone because of the adblock sizes they use.
At least that's how I understand things at this point.
# banner (468x60 pixels)
# leaderboard (728x90)
# inline rectangle (300x250)
# skyscraper (120x600)
# wide skyscraper (160x600)
So I was pretty close in my previous post above. But the 336x280 isn't on the list.
