Maximum CPV vs Target CPM + Bid Strategy to Avoid for PMax – Bidding Strategies Guide Part 5

Fri, Aug 19, 2022

John talks about the two bidding strategies that aren’t conversion-focused but are good for awareness and placement. He also reveals the bidding strategy to avoid if you want to scale your Performance Max campaigns.

In Part 5 of our Bidding Strategies Guide series, John discusses Maximum CPV and Target CPM bidding. He shares how you can access these since they’re not applicable to all campaigns, when and how to use them to save money and target a mass audience, and many more.

0:00 Intro | Bidding Strategies Guide Part 5

0:45 Maximum CPV vs Target CPM

2:33 Maximum CPV is an aggressive bidding strategy

6:08 Target CPM is less aggressive and can be less expensive

11:31 John’s advice on the bidding strategies for Performance Max

🎯 Guide to Google Ads Bidding Strategies:

Guide to Google Ads Bidding Strategies Part 1 | Maximize Clicks: https://youtu.be/QSsNj1XHJS4

Maximize Conversions | Bidding Strategies Guide Part 2: https://youtu.be/ahardi5itKA

Maximize Conversion Value | Bidding Strategies Guide Part 3: https://youtu.be/_sVoyy3xaOk

Target Impression Share vs. Manual CPC: https://youtu.be/cYjr2bnvVz4

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Transcript
kasim:

My opinion on performance max is to take this money.

kasim:

I don't care what happens now.

kasim:

The funniest thing is sometimes you can't use these in certain campaigns.

kasim:

So these bidding strategies are, are good for awareness or placement

kasim:

where they're not good if it was cause the maximum $15 cost per view.

kasim:

Imagine if you have good brandable videos, for example,

kasim:

and you want to go to the mass.

kasim:

You can use target CPM, cuz it's gonna bring down to your cost.

kasim:

I would not run these type of campaigns where it's just audience based or it

kasim:

gonna cost me 15 bucks to interview.

kasim:

Super crazy.

kasim:

Ridiculous expensive.

kasim:

So there's two other bidding strategies.

kasim:

I wanna talk about, which is target CPM, target cost per Millie

kasim:

and target CP cost per view.

kasim:

Now the funniest thing is sometimes you can't use these in certain campaigns.

kasim:

What I mean by that is if you were to use, create a new campaign.

kasim:

And you said, Hey, I want leads.

kasim:

And I wanna use them for, well, excuse I'll say like sales and it's

kasim:

purchases here or leads, whatever, conversion strategy you're using

kasim:

this time here, we'll sort of lock you in to a true view for action.

kasim:

Which means that it's only gonna use conversion based bidding

kasim:

strategies, maximize conversions and maximize conversion value of

kasim:

target CPA, target rows, etcetera.

kasim:

So if you are focusing on a campaign type that says leads or sales, what

kasim:

you'll notice is if I say video, okay, I'm only gonna use conversions.

kasim:

I cannot use target costs for view or target cost per Billy.

kasim:

I'm stuck with a conversion based bidding strategy.

kasim:

So choosing a different goal.

kasim:

For example, I've said, okay, I have a new campaign and I'm gonna create

kasim:

a campaign without a goal's guidance.

kasim:

And I wanna use video now.

kasim:

I have different options.

kasim:

Now I can create a custom video campaign.

kasim:

Well, that's cool.

kasim:

Cuz why with a custom video campaign, now I can have a maximum

kasim:

CCP or a target cost per milli.

kasim:

And with a maximum CCP you could set a target cost.

kasim:

So what's cool about this is now you're and not this one here, but in a

kasim:

different version of this, you can set a target cost per acquisition and a

kasim:

target , in a viewable cost per Billy.

kasim:

So what's interesting about this is there's more bidding strategies, depending

kasim:

upon the campaign selections that you use.

kasim:

So a , maximum cost per view.

kasim:

Is a aggressive fitting strategy.

kasim:

It's not a restrictive fitting strategy.

kasim:

This is actually focusing on getting the most amount of views because you're

kasim:

actually maximizing the cost you by saying, Hey, I want this thing to be

kasim:

out other competitors in this space.

kasim:

So for example, if you're wanna go on food networks, YouTube.

kasim:

that's a very expensive channel.

kasim:

There's people that are very specific that are trying to

kasim:

advertise food related product.

kasim:

To people that go to food networks, YouTube channel and food networks, YouTube

kasim:

channel with millions of subscribers and they run ads on their YouTube channel.

kasim:

That's how they monetize that channel.

kasim:

Well, I have two options I can say, well, I'd like to have a maximize

kasim:

cost per view, so I'll pay and I've had actually had this happen.

kasim:

I've had a $15 cost per view on food network.

kasim:

I'm using that as example, cause I've done it.

kasim:

It was horrible cause the maximum $15 cost per view, imagine that I have one

kasim:

YouTube video viewing not clicking was $15 because I was targeting a video on, food

kasim:

networks, YouTube channel food network had a hot sauce video and it was something

kasim:

about like hearing the best hot sauce.

kasim:

And so it was like, This is a hot sauce company.

kasim:

And so I'll say that again so we can blur out there was a so we

kasim:

can, we can use their training.

kasim:

So food network had a hot sauce video on their YouTube channel that I

kasim:

wanted to place that on for a company that we have that sells hot sauce.

kasim:

And so I took the hot sauce companies video, and I placed it

kasim:

on that video on food network.

kasim:

And it cost me 15 bucks to interview.

kasim:

Super crazy, ridiculous, expensive.

kasim:

Why?

kasim:

Because other people were also trying to be a ad on that YouTubes

kasim:

or on that YouTube channel, which is food networks on that video

kasim:

that I was also trying to be on.

kasim:

If I used targeted cost per milli, I probably wouldn't even have run unless

kasim:

I set my target cost per Millie to.

kasim:

15,000 I would've to pay for that.

kasim:

The cost of a thousand people to view would be so high that it

kasim:

would be more than my maximum CCPD.

kasim:

So when we're talking about the maximum cost for you, you get to set how much

kasim:

you are willing to spend on a view.

kasim:

And sometimes you have to increase that in order to gain viewer.

kasim:

In that viewership, you are very specific.

kasim:

I would not run these type of campaigns where it's just audience

kasim:

based like, Hey, people who are just hot sauce, I wouldn't necessarily

kasim:

use , maximum C P I will get good.

kasim:

Viewership, but it's gonna be very expensive.

kasim:

Target cost per Milly might be a better option if I'm not gonna go

kasim:

after a specific placement I'm going after an audience or a user's intent.

kasim:

Whether it might be DSK, like people that have a, content related

kasim:

targeting capability that I could choose with their based on, are they

kasim:

viewing or typing in that keyword?

kasim:

So these bidding strategies are, good for awareness or placement where

kasim:

they're not good is conversions.

kasim:

And skillability broadly to masses of people that might be Countrywide.

kasim:

So they're good for specificity and this area of this child or this

kasim:

geography, I need to get the most, my impressions for this specific action.

kasim:

I'm trying to take, regardless of what happens.

kasim:

If you have good brandable videos, for example, and you want to go to

kasim:

the masses, you can use target CPM, cuz it's gonna bring down your cost.

kasim:

It's gonna be less aggressive and it'll be probably less conversion

kasim:

focused because now you're just trying to get like, it's a billboard like,

kasim:

Hey, I know there's traffic here and I'm just gonna place it there.

kasim:

And I wanna be as little as monthly cost as possible to impress all that traffic

kasim:

here because my Billboard's there.

kasim:

My opinion, I've seen better performance on still mass videos.

kasim:

But with an automated bidding strategy, focus for conversions

kasim:

maximize conversion value.

kasim:

The reason why is you have sometimes the need to gain new customers

kasim:

and have a cost per acquired customer or a cost per acquisition.

kasim:

That is a bit more controllable, but also a little bit more.

kasim:

Audience focused.

kasim:

This is not a glitch.

kasim:

I'm interrupting because I need to remind you that I'm always looking

kasim:

for people to join our team.

kasim:

So if you're passionate about Google ads and you wanna work with the best

kasim:

Google ads agency on the planet, please go to so late.com/apply.

kasim:

Speaking of working with the best Google ads agency on the planet, if you're having

kasim:

trouble with Google ads and you want professional help, that's what we do.

kasim:

You can go to.

kasim:

So lake.com that's S O L eight.com to apply for your

kasim:

free no obligation action plan.

kasim:

And if I've given.

kasim:

Any level of value at all.

kasim:

Maybe think about giving me a thumbs up and subscribe your channel.

kasim:

That's how we choose the YouTube algorithm.

kasim:

So they actually know that I know what I'm talking about.

kasim:

If you have questions, comments, concerns, or confessions hit me

kasim:

below in the comments and now back to your regularly scheduled program.

kasim:

So for example, if I'm running like target CPM or , maximum CP, these are manual.

kasim:

These are regardless if that person's even interested or not, what are you

kasim:

willing to pay to put it for that person?

kasim:

If you're using a video strategy though, and you wanna use maximize

kasim:

conversions, it's gonna say, okay, there was potentially a million

kasim:

people that could see this video, but I'm only gonna show it to 200,000.

kasim:

Cuz these 200,000 people have the highest chance of actually converting.

kasim:

I like that better.

kasim:

As an agency we're judged on CAC, LTB or CAC for LTB Roaz CPA.

kasim:

We're focused on performance.

kasim:

That's who we are.

kasim:

We're a performance based company.

kasim:

So when you're talking about performance, if you're using a conversion based

kasim:

bidding strategy, even for mass marketing, like for videos on YouTube,

kasim:

you can actually get a better result.

kasim:

I'll give you an example.

kasim:

This is a company that is, we're doing mass marketing videos.

kasim:

So no placement targeting, it's just targeting to people.

kasim:

There is a little bit of placement targeting, but it's targeted mostly

kasim:

to people that have an interest in the product type that we're selling.

kasim:

And inside of here, what we could see is that in the last seven days, we've spent

kasim:

$7,000 on top of funnel YouTube with using, I think it's maximized conversions

kasim:

is the big strategy that we're using here.

kasim:

It's a, it's a conversion based bidding strategy and we're getting.

kasim:

47% more this week, new first time revenue at a row as of 0.65.

kasim:

And we have then 682 people that have converted to are returning at a 0.1.

kasim:

So when you look at am I actually getting new customers at the top of

kasim:

the funnel at a good CPE, good CPA.

kasim:

Yeah.

kasim:

I'm getting $94 for a brand new customer to this client on a YouTube mass

kasim:

marketing video using automated bidding.

kasim:

Why is this important?

kasim:

Well, if I wasn't focusing on conversions, would I have gotten this here?

kasim:

Probably not.

kasim:

No, the campaign's not gonna optimize towards the conversions.

kasim:

It's gonna optimize for paying the least amount of money to anybody,

kasim:

whether they were interested or not.

kasim:

There is a lot chatter around, Hey, use CPM bidding or use C P bidding.

kasim:

Yes, that is true.

kasim:

That will be cheaper cost per.

kasim:

Maximize conversions cost review is usually two to three times higher than

kasim:

if you were using target CPM video, which is I only wanna pay 20 bucks for every

kasim:

thousand people that watch this video.

kasim:

The bad part is the 20 bucks you spent on a thousand people to see that video two

kasim:

might have been interested and it, since not care, it's gonna keep doing that.

kasim:

So it's not gonna optimize to do better conversion when you're

kasim:

optimizing tours is viewership.

kasim:

Just mass marketing.

kasim:

There's a time and place for that.

kasim:

Don't let it be your default.

kasim:

Unless a client agrees, take this money.

kasim:

I don't care what happens, which usually doesn't happen very much.

kasim:

so I still like automated bidding strategies for mass marketing,

kasim:

because at the end of the day, they're gonna say cool.

kasim:

What happened?

kasim:

Even if you're working inside of a business, your boss might come in and

kasim:

say, what did how'd that video perform?

kasim:

And if you say it cost me 20 bucks, you're gonna say, cool.

kasim:

How did it perform?

kasim:

What did it get us?

kasim:

you say a million impressions or 25 sales, there's gonna be a difference there.

kasim:

That's the goal.

kasim:

So using these bidding strategies are good, but they are not.

kasim:

In my opinion, as good as a automated big strategy, unless you have a

kasim:

specific tactical reason for paying too much to be in a specific area,

kasim:

to a person like a place on a YouTube channel or YouTube video.

kasim:

I think that's all that I wanted to cover for bidding strategies.

kasim:

And how they kind of equate to actually I guess I'll leave one, one

kasim:

last final note because I know PAX is something that's extremely important.

kasim:

My opinion on performance max is target cost for acquisition targeted.

kasim:

Target return on I spend do not perform as well as a daily ad

kasim:

spend control, leaving it run wide.

kasim:

It, it usually just doesn't I'm still getting on my pillow case campaign

kasim:

in the last 30 days, 192% return.

kasim:

And there's a hundred thousand dollars in conversion value here on

kasim:

50 K and spend letting it run wide open on maximize conversion value,

kasim:

which typically defaults to trying to spend 150% return on that spent.

kasim:

Also one of the, side notes, we'll cover this in a different topic,

kasim:

but there's a reason why this 7,000 here is worth much more than 0.65.

kasim:

And that's where we're gonna talk about another time period of CAC versus row

kasim:

as the client goal and how you look at everything to see how it's performing

kasim:

to give you a little teaser of that.

kasim:

My brand campaign, after we started YouTube top of funnel

kasim:

and try to spend $5,000 a day.

kasim:

This is I've been trying to spend $5,000 a day from.

kasim:

We hit up here that we, this is a sale and it's been kind of ever growing at 5,000.

kasim:

We actually had another sale yesterday at 3,700, but my increase in my brand

kasim:

has been steadily increasing over time after running YouTube, top of

kasim:

funnel and discovery top of funnel, both at a thousand dollars a day.

kasim:

And this return here has been been fantastic.

kasim:

If we look at the, like the last 30 days compared to the previous 30 days, You

kasim:

notice that my spend has gone up a lot in my brand campaign, went from 33 to

kasim:

66, but my return went from 1 52 to 2 21.

kasim:

So I spend 33,000 more to get 70,000 more.

kasim:

So my ROAS is still, good.

kasim:

And it's growing.

kasim:

But that is because we are actually able to spend more on top of funnel,

kasim:

that's gonna be another class that we're gonna talk about how to look

kasim:

at everything, but it's kind of a cool, cool topic to discuss, but

kasim:

that bidding strategy is helping.

kasim:

Why, because I'm focused on the bottom of the funnel as much as possible

kasim:

in my outbound campaigns that is returning in my brand campaign.

kasim:

So that's the reason why you use conversion based bidding strategies

kasim:

more often than manual, or talk about outbound campaigns, because

kasim:

at the end of the day, you're gonna need to measure what happened.

kasim:

And that's the reason why I like those bidding strategies better end of class.

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