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

kasim: 00:00:11

My opinion on performance max is to take this money.

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I don't care what happens now.

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

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

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

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Imagine if you have good brandable videos, for example,

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and you want to go to the mass.

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

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

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gonna cost me 15 bucks to interview.

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Super crazy.

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Ridiculous expensive.

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So there's two other bidding strategies.

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

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and target CP cost per view.

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

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

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And you said, Hey, I want leads.

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

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

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

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

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strategies, maximize conversions and maximize conversion value of

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target CPA, target rows, etcetera.

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

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

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

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I'm stuck with a conversion based bidding strategy.

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So choosing a different goal.

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

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a campaign without a goal's guidance.

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And I wanna use video now.

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I have different options.

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Now I can create a custom video campaign.

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Well, that's cool.

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

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CCP or a target cost per milli.

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

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

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

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target , in a viewable cost per Billy.

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

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upon the campaign selections that you use.

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So a , maximum cost per view.

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Is a aggressive fitting strategy.

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It's not a restrictive fitting strategy.

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

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

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out other competitors in this space.

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

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that's a very expensive channel.

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

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advertise food related product.

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

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

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That's how they monetize that channel.

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

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

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

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

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

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

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

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about like hearing the best hot sauce.

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

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

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can, we can use their training.

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

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

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

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on that video on food network.

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And it cost me 15 bucks to interview.

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Super crazy, ridiculous, expensive.

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Why?

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

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

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that I was also trying to be on.

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

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I set my target cost per Millie to.

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

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

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would be more than my maximum CCPD.

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

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you are willing to spend on a view.

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

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In that viewership, you are very specific.

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

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

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use , maximum C P I will get good.

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Viewership, but it's gonna be very expensive.

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

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

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

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

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viewing or typing in that keyword?

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

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they're not good is conversions.

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

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

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

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

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

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

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

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

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

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

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here because my Billboard's there.

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

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But with an automated bidding strategy, focus for conversions

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maximize conversion value.

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

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

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

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Audience focused.

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This is not a glitch.

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kasim: 00:06:50

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You can go to.

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free no obligation action plan.

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And if I've given.

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Any level of value at all.

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

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That's how we choose the YouTube algorithm.

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

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

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

kasim: 00:07:17

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

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

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willing to pay to put it for that person?

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

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

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

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

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I like that better.

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

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We're focused on performance.

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That's who we are.

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We're a performance based company.

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

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

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you can actually get a better result.

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I'll give you an example.

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

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

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

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

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

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

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is the big strategy that we're using here.

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

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

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

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

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the funnel at a good CPE, good CPA.

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Yeah.

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

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marketing video using automated bidding.

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Why is this important?

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

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Probably not.

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

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

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whether they were interested or not.

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

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Yes, that is true.

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That will be cheaper cost per.

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

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

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thousand people that watch this video.

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

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

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

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optimizing tours is viewership.

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Just mass marketing.

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There's a time and place for that.

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Don't let it be your default.

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Unless a client agrees, take this money.

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

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so I still like automated bidding strategies for mass marketing,

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

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What happened?

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

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say, what did how'd that video perform?

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

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How did it perform?

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What did it get us?

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

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That's the goal.

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

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

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

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

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

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

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

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

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

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spend control, leaving it run wide.

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

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in the last 30 days, 192% return.

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

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

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

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

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

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

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

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to give you a little teaser of that.

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My brand campaign, after we started YouTube top of funnel

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and try to spend $5,000 a day.

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

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

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

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

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

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And this return here has been been fantastic.

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

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

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

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

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So my ROAS is still, good.

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And it's growing.

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

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

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

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that bidding strategy is helping.

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

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

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

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

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

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