With the right CTR, can bidding CPM on content network yield < $.01 effective cpc?

Discussion in 'Google AdWords' started by dubbyah, Jul 6, 2010.

  1. #1
    Well, there's a .01 hard cap to minimum bid when you bid manual cpc on content network. However, you can also bid on a cpm basis. My question is that if I bid cpm and get a super high CTR like 10%, am I effectively going to be paying less than a cent per click (provided, of course, that the cpm price is as such that it would equal out to less than a cent with the ctr factored in), or is there a hard cap that will artificially increase my cpm price so that I will have to pay at least a cent per click? Personal experience helpful. Thanks guys!
     
    dubbyah, Jul 6, 2010 IP
  2. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #2
    The minimum is $0.25 when you use the CPM model. Your ranking works the same as the search network: your bid and quality (your CTR in this case) are multiplied. To make everybody equal, Google does a conversion to one model (likely CPM but that doesn't matter).

    It is unlikely you will get a 10% CTR on the content network. But if you do, yes, bidding $0.25 CPM means you'll effectively pay one quarter cent per click. Even a more reasonable 1% CTR means only 2.5 cents per click. But bidding that low means you won't get much exposure.
     
    Lucid Web Marketing, Jul 7, 2010 IP