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?
- CPC bids are effectively converted to CPM bids
- 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
Correct answer is:
- CPM bids are effectively converted to CPC bids
Explanation:
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
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