According to Google’s blog, InsideAdwords, Google has released a new feature for their advertising platform. Advertisers now have the option of designating an average CPC (cost-per-click) or CPM (cost-per-impression) bid called preferred bidding.
In the past, advertisers had to continually monitor their campaigns to manually adjust their bids to reach an average CPC. The preferred cost feature option could possibly help advertisers control the cost of their advertising dollars by allowing them to specify an average CPC or CPM.
With the new feature, you can simply input the amount you want to target for your bids. Google will automatically work to bring you bids as close as possible to your specified target amount throughout the campaign. As Google adjusts your bids, the position of your ads may fluctuate to reach your target CPC or CPM bid. This new bidding strategy option can be accessed from within the campaign level of an account. However, if you do not opt in for this feature, the existing maximum CPC model will remain enabled. What impact do you think this new pricing system will have on the management of your campaigns? Let me know what you think by posting your comments.