In Shoemoney's $10K ppc experiment I saw Shoe used Adwords CPM site targeting and did great with it. Here's the excerpt: "CPM Targeting for the win… Here is a dirty secret. CPM target sites where the only good content is the AdSense ad. Here is the deal… with AdSense lets say it costs you 6$ to be #1 for Verizon Ringtones for search results… but ohh wait, what is this??Why it’s the #1 ORGANIC Google result for the phrase “Verizon Ringtones†and it only costs me 10$ CPM (cost per 1,000 impressions or roughly 1 cent per impression). Since this ad is really the only relevant content it converts REALLY WELL." http://www.shoemoney.com/2006/04/13/10k-ppc-experiemnt-part2/ I read up on Adwords and found that CPM ads compete with the regular content ads based on eCPC. I don't know how Shoe could get ahead of the competitors bidding on ringtones in the content network. It would seem you would need a much higher CPM to out bid the content adds. So whats the secret to CPM Adwords advertising to get ahead of all the contextual bidders?
But does a $10 CPM site-targeted ad really beat a $6 CPC keyword ad? According to what Learner45 quoted, it does...but that seems illogical.
"6$ to be #1 for Verizon Ringtones for search results" Apples and oranges. The $6 is for the search results, not the content network. You can't run CPM ads on Google's search results.