Google's new site targetting not a PPC model

[wiltonbiz]

If I'm figuring it out correctly, Google's new site-targetting option is a really big deal. It's part of Adwords, which up til now has been a PPC model. Here comes "Site-Targetting," which is not a PPC model. You pay for impressions, not clicks. That's a sea-change in Adwords! I set up a test campaign using Site Targetting, and it allows me to pick a site or sites I want to run on. Pretty cool so far. But the pricing model is more like buying TV spots or magazine pages -- cpm! You bid on a thousand impressions at a time (I prefer the old-fashioned term, "eyeballs,") and the minimum bid on my test was $2 for 1,000 impressions. If my bid is top, the ad runs. But where is my click guarantee? There isn't one! I think it's a brilliant move, to allow such specific targetting. But let's not overlook the huge change in the pricing model.
WiltonBiz

[AussieWebmaster]

If I'm figuring it out correctly, Google's new site-targetting option is a really big deal. It's part of Adwords, which up til now has been a PPC model. Here comes "Site-Targetting," which is not a PPC model. You pay for impressions, not clicks. That's a sea-change in Adwords! I set up a test campaign using Site Targetting, and it allows me to pick a site or sites I want to run on. Pretty cool so far. But the pricing model is more like buying TV spots or magazine pages -- cpm! You bid on a thousand impressions at a time (I prefer the old-fashioned term, "eyeballs,") and the minimum bid on my test was $2 for 1,000 impressions. If my bid is top, the ad runs. But where is my click guarantee? There isn't one! I think it's a brilliant move, to allow such specific targetting. But let's not overlook the huge change in the pricing model.
WiltonBiz
LOL... yes this is a new pricing model... and it will change part of the AdWords program.... I would expect it to eventually spin off into its own area similiar to AdSense (though the content for which is AdWords)... here I see the spin off as an AdSense new AdSpace program!!!

[mhhfive]

Actually, Google used to do CPM ads, but stopped in 2003.

http://www.google.com/ads/insurance.html

..."In the late summer of 2003, Marc Zeitlin moved into the Internet-based business from parent company ComparisonMarket as director of Marketing. It was then he learned that Insurance.com was already a Google AdWords™ advertiser. The site had been running ads under the original CPM-based AdWords program (it was retired in December 2003 in favor of a cost-per-click model). He also discovered that the CPM approach was one of the company's best sources for qualified leads, so he was concerned that CPC advertising would not perform as well."

[AdWordsRep]

Back To The Future, Actually.... Heheh. You have a good memory, mhhfive! I was sort of waiting to see if someone would recall that almost forgotten fact. ;)

AWR

[lorenbaker]

There is usually no guarantee with CPM ads, especially an automated system (as opposed to whining to an ad rep about needing better ROI on a CPM campaign and pleading with them to give more IMPS).

The best thing to do here is to do the math.

If it is a Google ad in a normal AdSense space that user is getting high CTR - probably over 1-2% (as compared to industry average .25% CTR).

So, let's call it a minimum 1% CTR on the Site Targeting ad, at a $3 CPM.

For each $3 spent, you're getting 10 clicks - or $.30 CPC. This would not be guaranteed of course, but based on the CTR and CPM variables.

Now, say you construct your image ad to appear similar to the Google AdSense ads which are getting 2-4% CTR in some occurances (not making your ad look like an AdSense ad, but making the image appear to have a text link in it, or half graphic / half link text in the image. Well, get 2% CTR and you've now halved your CPC to $.15.

It's a game of strategy and dynamics. In CPM graphic campaigns not only is your copy important, but so is feel, color, and design compatibility with the target site.