There are a lot of bidding options that advertisers can use for their campaigns, but not all of them are going to be right for your campaign. In this blog post, I break down the differences between CPM and CPC bidding strategies and help you figure out which is best suited for you.
Digital Marketing has changed drastically over the past few years with more companies using online advertising as a way to promote their brands or sell products. And while there are many different types of digital ads, one type, in particular, that’s been on the rise is affiliate marketing – where someone promotes or sells another company’s product through an ad on their site or social media account (e.g., Instagram).
Affiliate marketing requires direct response ads because it aims at driving conversions or sales through your link. This is the reason why CPC bidding options are often best for affiliate marketing campaigns.
Which Bidding Option Is Best Suited For An Advertiser Focused On Direct Response Marketing Goals?
There are three common bidding options for advertisers to choose from. Google AdWords is the most well-known option, but it’s not the only option available. There are three different kinds of bidding options that they can choose from: per click, per impression, and per action. While Google will be the best choice for advertisers focused on direct response marketing goals, others may find that they would prefer to pay per click or pay per impression instead.
Advertisers who are looking at each option should consider what their advertising goals are. Google’s function is to help advertisers meet their direct response goals which mean obtaining a desired action from the people seeing their ads. If this is an advertiser’s goal, Google AdWords will likely be the best choice for them.
However, there are other options that they can consider in lieu of this option and these will fulfill different needs. If they’re looking to get more views on their ads, then per impression bidding can meet that need. For example, using an ad that appeals to emotion will likely get more views than one which is targeted towards direct response. Another option is per click bidding, which means advertisers pay for clicks on their ads rather than views of them. This can be helpful for some because they may not need the additional exposure and instead just want to draw attention to their products or services.
There are other options that advertisers can use in addition to Google AdWords, but they should consider their goals before making a decision. Other bidding options won’t be beneficial for every advertiser, but some may find them helpful. For advertisers focused on direct response marketing, Google AdWords will likely be the best choice because it will help them meet their goals.
The advertiser who is focused on direct response marketing goals will most likely want to bid for conversions. This type of bidding option allows the marketer to pay a fixed amount per click that results in a conversion, which means they’ll have more control over how much they spend and can optimize their campaign accordingly. On the other hand, if you are looking for broader reach or awareness with your advertising dollars, you may be better served by CPM bidding options instead. Regardless of what strategy might work best for your business needs, it’s important to experiment with different types of bids when starting out so you know which ones lead to success in terms of ROI before committing too heavily one way or another.