Advertising Buying Mechanism For Google Ads

Advertising Buying Mechanism For Google Ads

 

In this article, I will be talking about the advertising buying mechanism for Google Ads. There are three display buying mechanisms to remember when planning activity, including fixed cost and auction buying mechanisms.

 

 

Premium Fixed Price: Cost per thousand impressions (CPM)
A premium CPM campaign, such as a homepage takeover on a popular news website, is not part of the regular AdWords Google Display Network settings or abilities and can only be done through an AdWords account manager or a premium buy, through a platform such as Adroll or Google DoubleClick. The campaign is based on a fixed price (set by the advertising platform) for every 1000 impressions that an ad receives and generally involves bespoke creative.

 

Auction: Cost Per Click (CPC)
CPC bidding means that you pay for each click on your ad and you can set a maximum CPC bid that you are willing to pay for that click. This bid is then considered as part of the auction as the webpage is loading and advertising space is filled.

 

Auction: viewable Cost per thousand impressions (vCPM)
vCPM is the cost per thousand impressions for your ad on the Display network. You can set the maximum you are willing to pay for every 1000 impressions.

 

There are two main mechanisms available for buying advertising which is specific to the YouTube platform:

#1 Premium buys

Mastheads (the equivalent to a Homepage Takeover on the YouTube homepage) or Reserve Buys (guaranteed delivery of a certain volume of video impressions, against a broad or targeted audience segment).

 

#2 Auction buys (Trueview)

Similar to paid search advertising, an advertiser pays when the user chooses to engage, based on a bidding model.
The YouTube Masthead is priced on a cost per day format, which will differ by market. Typically, this format is used by larger advertisers simply due to cost, however, the reach it achieves is impressive, with millions of unique users visiting the homepage every day.

 

The YouTube Reserve Buy runs in a similar fashion to Trueview in that it runs as a ‘pre-roll’ before the video the user is about to watch. Reserve ads have the option to be ‘non-skippable’ and must be 30 seconds or less, whereas Trueview is ‘skippable’, and can be of any length. It is worth noting, that Reserve Buy pricing also varies depending on the levels of targeting chosen, and the formats available are constantly being re-evaluated and updated including a reduction in the number of non-skippable formats.

 

Video and display campaigns should be viewed as an ‘upper-funnel’ activity (except in the case of non-standard formats such as shopping or app installs), and the KPIs for the campaign should reflect this.

 

Video & display can reach people at all stages of the buyer’s journey, but its strength is considered to be in reaching people at the beginning of the buyer’s journey at the awareness, interest and consideration stages.

 

Remember, your campaign objectives will influence what campaign setting and targeting you choose, what kind of ad format you use and what kind of return-on-investment (ROI) to expect. So it is key to decide your objectives early in the planning stages.

 

Your objectives will also define the campaign measurement you choose to report on, and your campaign optimization should always be related to performance against the objectives set. In short, determining the success of a display and video campaign and ROI is dependent on how it performs against the objectives set.

 

It is important to know your advertising goals as these will dictate which objectives you choose when setting up your display and video campaigns. Consider the key objectives for effective display and video marketing strategy when choosing your campaign objectives and goals:

 

#1 Build brand awareness

This is when you have a new business, or launched a new product and your primary goal is to increase awareness of your brand or product. A campaign with a brand awareness objective will focus on impressions, customer engagement, reach and frequency and not on clicks. These types of campaigns will use placement targeting, rich media ad formats and rely on a CPM bidding strategy.

 

#2 Influence consideration

 This is when you want to set yourself aside from other businesses with a similar product. You need to educate your customer on your product and show them your unique selling points (USP). These types of campaigns will rely on retargeting to your customers as well as audience targeting.

 

#3 Drive an action

 These types of campaigns are focused on having your customers perform an action on your website, such as buying something, filling in a contact form, downloading a document, or going to a particular page. These type of campaigns will use very specific targeting, conversion tracking and remarketing.

 

Action Point
PS: If you would like to have an online course on any of the courses that you found on this blog, I will be glad to do that on an individual and corporate level, I will be happy to do because I have trained several individuals and groups and they are doing well in their various fields of endeavour. Some of those that I have trained include the staff of Dangote Refinery, FCMB, Zenith Bank, and New Horizons Nigeria among others. Please come on Whatsapp and let’s talk about your training. You can reach me on Whatsapp HERE. Please note that I will be using Microsoft Team to facilitate the training.

I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you can drop your comment. Thanks in anticipation.

CRMNUGGETS  is committed to fact-checking in a fair, transparent and non-partisan manner. Therefore, if you’ve found an error in any of our reports, be it factual, editorial, or an outdated post, please contact us to tell us about it.

 

Hi, I now use RavenBank to send, receive and save money. I also pay my bills with ease, you should try it out too

Fact Check Policy Contact Us