Home » Adwords Fundamental » 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?

  • CPM bids are effectively converted to CPC bids
  • Ads using CPC bids are not allowed to compete on the Display Network
  • CPC and CPM bids only compete against bids of the same type
  • CPC bids are effectively converted to CPM bids

The correct answer is: CPM bids are effectively converted to CPC bids

Explanation: Cost-per-click (CPC) ads compete with cost-per-thousand impressions (CPM) ads on the Google Display Network by effectively converting to CPM bids.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

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

  1. I think that correct answer is
    “•CPC bids are effectively converted to CPM bids”

    Read here :

    “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.”
    https://support.google.com/adwords/answer/2630842?hl=en

    Reply

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