Does Location Matter For CPM Ads

6.15 Does Location Matter For CPM Ads?

In a word, yes! This is what Google has to say about CPM ads, the type of ads you’re likely to get from a site-targeted campaign (my emphasis):

You'll earn revenue each time a CPM (cost per 1000 impressions, also known as pay-per-impression) ad is displayed on your site. You won't earn additional revenue for clicks on these ads.

Please note that the placement of CPM ads on your pages can affect the amount an advertiser pays for that impression. Placing your CPM ad units below the fold, or in an otherwise low-impact location, may result in lower earnings than if the ad unit was placed in a conspicuous location.

So if you were thinking, “Great! I’ll encourage click-throughs above the fold and get paid per impression with an expanded text ad at the bottom of the page...” think again.

Google claims that CPM campaigns have to bid for space on publishers’ websites in the same marketplace as CPC ads, and that therefore you would only receive a CPM ad if it’s the highest paying option. If advertisers are paying less for a CPM ad at the bottom of a page, it’s less likely then that you’re going to get one down there.

Now, how Google is figuring out where on the page you’re putting your ads beats me. Their love of Smart Pricing (see Chapter 13) though, suggests that they could be comparing advertisers’ sales results with the number of impressions and assuming that sites with high impressions and low sales have put the ads in out-of-the-way places.

Whichever method they’re using, the end result is that you’re still going to see higher revenues from ads in the best locations and less from the worst spots.