CPC/CPM ad pricing
There is a difference between ad pricing for CPC/CPM and CPA. The following is an explanation of ad pricing for CPC/CPM:
CPC for the banner, native, text+image, interstitial, pop and text ads
1. The screenshot below is an example of ad pricing if you want to optimise cost per click (CPC) for banner, native, text+image, interstitial, pop and text ads. Shopping ads have different ad pricing structures and please refer to step (13) below.
2. In this example, the current Suggested Rate is $0.09 per click. This is based on recent bids by other advertisers.
3. Suggested Rate also varies according to the size of the ad. For example, popular ad size such as 300x250px are different from an ad with a size of 120x600px.
4. At times, the Suggested Rate will decrease to less than $0.09 per click. It would be best if you always referred back to the Suggested Rate for your ad at all times and you can lower the CPC manually either similar to the value of the current Suggested Rate or slightly lower.
5. What if the CPC value is lower than the Suggested Rate, for example, $0.05? No problem, because our system will display the ad with the highest bid first and followed by your ad with a lower bid. To your knowledge, our system will display ads with high bids more often to the audience.
6. Ad Total Budget is the advertising budget for your entire campaign period. It is based on the advertising budget per day set out in the Ad Daily Budget. For example, if your Ad Daily Budget per day is $20 and your advertising campaign period is 15 days, the Ad Total Budget is $300.
7. What if Ad Daily Budget is not fully utilised for the day? Then, the Ad Daily Budget balance will be carried over to the next day.
8. What if the Ad Daily Budget runs out for the day? Your ads will stop automatically and start the next day again according to the value of the Ad Daily Budget.
CPM for the banner, native, text+image, interstitial, pop and text ads
9. The screenshot below is an example of ad pricing if you want to optimise cost per mille (CPM) for banner, native, text+image, interstitial, pop and text ads. Shopping ads have different ad pricing structures and please refer to step (13) below.
What is the Cost per Mille (CPM)? A visitor who sees an ad (without clicking on the ad) is equivalent to one impression. One mille of impression equals 1000 times viewed by visitors. If they click on your ad, then it will be a bonus for you.
10. In this example, the current Suggested Rate is $8.65 per mille. This is based on recent bids by other advertisers.
11. Suggested Rate also varies according to the size of the ad. For example, popular ad size such as 300x250px are different from an ad with a size of 120x600px.
12. At times, the Suggested Rate will decrease to less than $8.65 per mille. It would be best if you always referred back to the Suggested Rate for your ad at all times and you can lower the CPM manually either similar to the value of the current Suggested Rate or slightly lower.
CPC/CPM for shopping ad
13. There is little difference in CPC/CPM for shopping ads. When you create shopping ad, there are 4 types of ad sizes to choose from, namely 300x250px, 728x90px, 160x600px and 120x600px. For this example, we created shopping ads with sizes 300x250px, 728x90px and 160x600px. When you click on MANAGE ADS, you will see three types of ad sizes as in the screenshot below:
14. The CPC ad pricing for shopping ads is also the same as the CPC for other display advertising types with the same CPC Rate, Suggested Rate, Ad Total Budget, and Ad Daily Budget configuration. You can refer to the descriptions in steps 2, 3 and 4 above (for CPC) or steps 10, 11 and 12 above (for CPM).
15. However, the most significant difference is due to choosing three types of ad sizes, so Ad Total Budget is also separate for each. As in the screenshot above, Ad Total Budget ($300) is for 300x250px ads only. You need to have additional advertising funds for 728x90px and 160x600px ads, which is $300 + $300 equivalent to $600. This brings the total Ad Total Budget to $900. This is just an example and you do not require to put a high Ad Total Budget value. Probably as low as $100 per shopping ad size (with a total of $300 for 3 shopping ad sizes).
See also: What will happen to my ads fund if I click the ADD budget button?