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Thursday, April 22, 2021

Cost Per Impression Google AdWords -How It Helps?

Have you noticed the online advertisements on top or right of the Google search result’s page and thought, how does anyone benefit from these on-screen pop-up ad banners?  If you want to grow your startup into a full-blown business while wondering if it is possible to see your business’s advertisements displayed on the Google page. Guess what? It is possible. You must be wondering how much must it cost. It is also known as Cost Per Impression Google AdWords. Read on and gather the information you need to begin with the online advertisement on Google

The online advertising service is a Pay per click advertising platform called Google Ads. It was previously called Google AdWords. If a business seeks Google AdWords then they get various features and benefits- 

Google search resultSuch as ad displays, has the liberty to bid on their desired keywords that they would like to use to attract viewers, and the best part about Google ads is one can choose the amount of money they are willing to spend on each click. Google ads are customizable, i.e., one has control over how much or when to pay. It also allows the advertiser to increase or decrease the bidding amount at any time. 

Let’s start with the basics-

Meaning Of CPM

CPM’s full form is Cost per Mille (M stands for roman numerical thousand). It is also called cost per thousand impressions that denotes the pricing method for online advertisement. An advertiser spends a fixed amount per 1000 impressions occurring on a piece of an ad.

cost per impressionWhat is the meaning of impressions? Impressions are the number of times an advertisement is displayed on a platform, every time someone views your ad. It is a term that came into existence way before the internet, it was used to evaluate the viewership of advertisements on other existing platforms (such as newspapers, TV TRPs, Radio, and so on).

What is Google Ad?

Google is the most widely practised search engine in the whole world. Here people type in to search for what to buy, how to do, where to go. Advertisers direct their ads to Google ads to get the service of getting their online advertisement displayed to grow their business. When a person enters a query into the search box before we can surf through the searched information, an online ad pops up on the display which offers a similar service that we are looking for. If the user clicks on the ad then it means the user found it relevant, as a result, the advertiser is likely to gain a return on investment (ROI). 

Google ads help bring potential customers in contact with businesses that offer similar products or services. Getting the exposure wouldn’t be possible if it weren’t due to an online advertisement. There are over 160 million people who own smartphones in the United States. Google listings or Google ads provide exposure to an audience, from where advertisers can attract targeted groups. 

 Google AdWordsGoogle ads CPM medium is five times higher than the most expensive social media platform cost per thousand impression model- Facebook. However, investing in Google Ads is profitable for the advertiser due to its super crowded website traffic. Advertisements from any niche can receive a targeted audience on Google. 

How does Google Ads work?

Google ads are known for their credibility, for which it attracts millions of companies that want to benefit from Google ads. In turn, it gives rise to competition and bidding for cost. Google ads work through an automated digital auction system. Before you know it, your advertisement is competing with other competitor’s advertisements. The auction determines the cost for a particular keyword in a Google ad. The budget you spend depends on the keywords on Google AdWords.  

The moment a user searches something on Google, the automated digital ad auction begins. If the keywords match with the search query then the bidding takes place. Bidding is the procedure for advertisers to choose how much they are willing to pay for a keyword or an ad space based on cost per thousand impression bases, in this context.

Pay per clickOnly the advertisement with the highest ad rank wins the auction and gets displayed on the screen. Ad rank is measured using the two most important factors- the maximum bid and quality score. Other factors determine ad rank, such as relevance, search context, expected click-through rate (CTR), landing page experience.

 Ad Rank = cost per click (CPC) bid x quality score

What is Google Ads Cost Per Impression?

Google AdWords follows the model of Pay per click (PPC). Advertisers spend only for the number of clicks (or action) an ad receives. Cost per impression (CPM) is not paid just for viewing on Google ads. The reason being there is no surety whether the user skipped the ad or had paid any attention to it. Hence, in advertisements where a viewer clicks on it and visits the website, their advertisers pay for impressions. Google ads do not charge the cost per impression that was not viewable. The cost per click is around $2.32.  The price continues to climb uphill due to its profitable ROI.

Google search adsDisplay networks are an essential part of Google ads as it helps in attracting potential consumers by capturing their attention before the user started looking for information. Google ads have the highest conversion rate. These ad spaces have charged as followed-

Google search ads have an average price of $ 38.40

Google display network ads (which includes- YouTube, Gmail, and more such platforms) have a price of $ 2.40

Google ads cost per impression is the amount the advertiser is willing to spend per 1000 impressions. Investing in Google ads is profitable as the display ad network has one of the best conversion rates or click-through rates. It brings businesses closer to potential customers by engaging them through online ads. As a result, it provides better returns of investment (ROI) than any other advertising platform. 

Due to Google AdWords’ customizable ad feature, the advertiser can make the ad appealing to the relevant target audience. If users click on the ad to visit webpages or open links, then the advertiser can pay as low as they want to as long as people are clicking on the ad.

With Google ad cost per impression, advertisers can connect with several potential customers at the lowest price possible. On the other side of the deal, Google is generating billions of dollars as revenue.



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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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