The value CPM (cost per thousand impressions) is an amount you specify to help Google Ad Manager estimate the value of campaigns. The amount entered in the "Value CPM" field serves two purposes:
- It's used in revenue calculations for impressions served.
- When a value CPM is defined for remnant line items, the value CPM is used for competition in dynamic allocation and First Look instead of the "Rate" value.
When dynamic allocation isn't in effect, the value CPM does not impact delivery—priority and goal are used instead. For example, without dynamic allocation, a Network line item at priority 12 will always preempt a Price Priority line item at priority 12 in the ad selection process. Even if a Price Priority line item has a value CPM of $10.00 and a Network line item has a value CPM of $7.00, the Network line item still preempts the Price Priority line item.
Estimate CPM value
Use the following formula to estimate the amount you should specify for your value CPM.
Total number of impressions Ad Manager sent to the selected line item)
Some additional tips:
- Use a recent performance report you've received from the ad network as the total revenue.
- Run a line item report using the same date range as the ad network's performance report to find the total number of impressions sent by Ad Manager.
Set a value CPM
To set a value CPM for non-guaranteed line item:
- Sign in to Google Ad Manager.
- Click Delivery Orders.
- Click the order containing the line item you'd like to edit.
- Click the line item you'd like to edit.
- Click set value CPM next to the Rate field and enter a value CPM amount.
- Click Save.
Why should you update your value CPM frequently?
Google Ad Manager uses your predicted value CPM rates to select the highest bidder. When your value CPMs are outdated, your networks could be competing with incorrect rates, preventing you from maximizing ad revenue.
You could increase your revenue by updating your value CPM rates at least once per month.
Add a reminder to your calendar to update your value CPMs.
Example: AdSense and Ad Exchange competition with network, bulk, and price priority line items
If your network has AdSense or Ad Exchange enabled, when the ad server selects a bulk, network, or price priority line item to serve, it compares the "Rate" of that prospective line item with the price of an AdSense or Ad Exchange ad. If the CPM of the AdSense or Ad Exchange line item is greater than the CPM of the bulk, network, or price priority line item, the ad server serves the AdSense or Ad Exchange line item.
In the example above, you could set a value CPM for your network, bulk, or price priority line item to be used as the rate for competition with Ad Exchange and AdSense ads instead of using the "Rate" value.
CPM with multiple advertisers
When multiple advertisers compete for the same ad slot, they participate in an Ad Exchange auction.
Each advertiser must pay a fee for participation in the auction. Google Ad Manager computes the first bid as the sum of maximum bids for the advertisers in the configuration. The second bid is computed as the price that was calculated for the winners of the Ad Exchange auction.
Report on value CPM
To report on value CPM, you can use the "average eCPM" metrics in Ad Manager reporting.