Paying cpm for Adwords ads can be a big mistake

Discussion in 'Google AdWords' started by shouser, Feb 25, 2008.

  1. #1
    When someone first told me that I could pay 1 cent per click if I just used cpm I went crazy. Wow, they don’t charge you per click so I’m going to make out like a bandit! A word to any newbies out there… Don’t pay cpm until you’re sure your ads are converting at a certain amount.

    If you have a good ad that has a ctr of 2%, then you can do the math to see if cpm will work for you. My suggestion is that you always start out at cost per click so that you can figure out what your conversions are. Until then, you shouldn’t mess with cpm, because you can get burnt even faster with that then cpc.

    The lesson? Test all of your ads on cpc before moving up to cpm… Make sure you have your conversions and advertising costs all mapped out before you dive in.
     
    shouser, Feb 25, 2008 IP
  2. robertpriolo

    robertpriolo Peon

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    #2
    Who recommended CPM?
     
    robertpriolo, Feb 25, 2008 IP