Google Ads is an auction-based advertising system that allows you to bid for ad placements on Google properties or publisher partner websites within the Display Network. You can bid on a cost-per-click (CPC) or cost-per-thousand impression (CPM) basis. The winner of the auction pays the minimum amount necessary to outrank the next advertiser in the auction when the ad appears on a page.
If you're running a campaign on both the Search and Display Networks simultaneously, you may want to set a separate bid for when your ads appear on Display Network sites. The Display Network bidding feature makes this possible. It helps you manage your budget and meet your specific advertising goals.
Choose the right pricing for your goals
- Cost-per-click (CPC): With CPC bidding, you tell us how much you're willing to pay per click, and we use that price in our auction pricing system. CPC is a great choice if your goal is to drive traffic to your site with your ads.
- Cost-per-thousand impression (CPM): With CPM bidding, you bid based on the amount you want to pay for impressions, or views, of your ad. CPM bidding works best when you want to focus on branding—when it's important that your message is seen by as many of your target user groups as possible, and generating traffic is not your primary goal.
- Cost-per-action (CPA): With the Conversion Optimizer tool, you bid using a maximum CPA, which is the most you're willing to pay for a customer performing a specified action on your website (such as a purchase or signup). Using historical information about your campaign, the Conversion Optimizer automatically finds the optimal CPC bid for your ad each time it's eligible to appear. You still pay per click, but you no longer need to adjust your bids manually to reach your CPA goals and can benefit from improved ROI. If your goal is to drive online transactions, this is the right choice for you.