Google Display Network - III

Smart Pricing model


Google’s one-of-a-kind Smart Pricing model adjusts your price so that you always get to pay the lowest amount possible.

Flexible Pricing Options to Suit Your Needs

Google's unique auction pricing model allows to shows your ad only when your bid wins the auction for an available spot. Then it adjusts the price so that you never pay more than the minimum amount necessary and keep the savings.

If you're running simultaneous campaigns on both the search and display networks, you may want to set separate bids for each. The bidding feature makes this possible and helps you manage your budget to meet your specific advertising goals.

Choose the pricing model that's right for you:

Cost-per-click (CPC)

Pay only when someone clicks on your ad. If your goal is to drive traffic to a website, this is the right choice for you. The amount of your bid is a key factor in determining whether your ad is showing in the places where you want and increasing this bid can improve the chances that your ad will appear. If you choose automatic CPC bidding, you can simply set a daily budget of how much you’re willing to spend in one day and let Google technology bring you the most clicks possible. Or you can specify bids for each ad group, keyword, or placement with manual bidding.

Cost-per-thousand impressions (CPM)

Pay each time your ad is viewed, regardless of the clicks. Pricing is per one thousand views: a CPM of $10.00 means you pay one cent each time your ad is displayed ($.01 x 1,000 = $10.00). If you want to show your ad to as many people as possible and you care less about clicks, this may be the right choice for you. Each time you set up an ad group, you can enter a default maximum CPM bid, which is the most you're willing to pay for 1,000 impressions. You might consider bidding higher for CPM ads because it must compete with multiple CPC ads and CPM ads for an entire ad space.

Cost-per-acquisition (CPA)

Set a maximum CPA – the amount you're willing to pay for each conversion – and the Conversion Optimizer takes care of the rest, managing your bids so your ad shows in the auctions most likely to lead to conversions. If your goal is to drive online transactions, then this is the right choice for you.

Google Technology Automatically Saves You Money

Pay less for certain clicks with Smart Pricing

Google’s Smart Pricing automatically lowers the cost for clicks on pages in the Display Network that are less likely to convert into customers.

For example, if you sell tennis rackets you might pay less for a click from a tennis news site than from a site that reviews tennis equipment since people reading reviews are more likely to be buyers. Smart Pricing on the Display Network can help achieve a lower cost-per-conversion than on the Search Network.

Keep your costs down with AdWords Discounter

Your actual cost is typically less than the bids you set. This is in part because the AdWords Discounter monitors your competition to ensure you pay the lowest possible price to keep your ad's position on the page. After each auction is run and your ad is ranked, the AdWords Discounter adjusts your actual CPC so you pay the minimum amount required to exceed the rank of the next ranked ad.

Gain more for less with Conversion Optimizer

The Conversion Optimizer uses your AdWords Conversion Tracking data to get you more conversions at a lower cost. How?

Google technology finds your best auction placements —the ones most likely to turn into conversions for you. Then it adjusts those placements to get as many profitable clicks as possible.

Campaigns adopting the Conversion Optimizer achieve on an average a 21% increase in conversions while decreasing their CPA by 14%. This analysis compares the performance of the Conversion Optimizer campaigns with a controlled set of campaigns and represents the average impact of the Conversion Optimizer. The actual impact will vary from campaign to campaign (a small number of advertisers could conceivably perform better without the Conversion Optimizer).

Courtesy: http://www.google.com/adwords/displaynetwork/