Amazon Display Advertising: vCPM Model Explained for PPC Campaigns
About this video
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In this video, I explain Amazon sponsored display campaigns using the vCPM model. Learn what vCPM is, when you should use it, and how to properly analyze your results. Amazon advertising campaigns can use different bidding models, and understanding the difference between CPM and vCPM is crucial for your Amazon ads strategy.
I start by explaining that CPM is cost per mille where you pay for every 1,000 impressions, while vCPM is cost per thousand viewable impressions. The vCPM model is more fair because regular impressions can be served anywhere on a page without being seen, while viewable impressions must be at least 50% visible for more than one second according to industry standards.
The main issue with vCPM campaigns is attribution. When someone views your ad and makes a purchase later, that sale gets attributed to the view rather than a click. This creates overlap with other Amazon advertising campaigns like sponsored products or sponsored display cost per click campaigns. Amazon will double count these conversions, making vCPM campaign results look amazing on paper.
You can use these Amazon display ads campaigns to increase reach and target specific audiences or use contextual targeting. However, don't rely on the sales metrics you see from sponsored display vCPM campaigns. Instead, measure viewable impressions and reach as your primary KPIs.
The key difference is that CPC campaigns charge when someone clicks your ad, while vCPM campaigns attribute sales when someone views your ad and then makes a purchase later, even without clicking. This makes vCPM useful for brand awareness but less reliable for direct sales attribution in your Amazon advertising campaign strategy.
Contents 0:00 Introduction to Amazon sponsored display vCPM campaigns 0:18 What is vCPM vs CPM model explanation 0:52 The attribution problem with vCPM campaigns 1:41 Double counting issue with Amazon advertising 2:07 When and how to use vCPM campaigns effectively 2:34 Key differences between vCPM and CPC attribution 2:57 Final recommendations for vCPM campaign usage
------------------------------------------------------ Some product links are affiliate links, which means that if you make a purchase, we'll receive a small commission.
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