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.
Value CPM with unified pricing rules
When value CPM is set, Ad Manager uses this value instead of rate to enforce unified pricing rules.
Estimate CPM value
Use the following formula to estimate the amount you should specify for your value CPM.
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 Settings.
- Under "Delivery settings", enter a value CPM amount next to the Rate field.
- 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 When your value CPMs are outdated, your networks could be competing with incorrect rates, preventing you from maximizing ad revenue.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.
For 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.
Report on value CPM
To report on value CPM, you can use the "average eCPM" metrics in Ad Manager reporting.