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Advertising Buying Mechanisms

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Digital Marketing - Study Notes:


There are three display buying mechanisms to remember when we're planning our activity, including a fixed cost and auction buying mechanisms.

  • CPM: We have premium fixed price, which is usually a cost per thousand or a CPM. The campaign is based on a fixed price set by your advertising platform for every 1,000 impressions that that ad receives. In premium buys, this usually involves a bespoke creative.
  • CPC: In the auction, we have the option to bid on a CPC (cost per click) basis. In cost per click, we set a limit as to how much we're willing to pay for somebody to click on our ads.
  • CPC: In the auction, we also have the option to bid on a VCPM (visible cost per thousand) basis. In visible CPM, we're setting the limit as to how much we're willing to pay for every 1,000 impressions that we receive.


With YouTube, we have two main buying mechanisms available for our advertisers.

  • Premium buys: Our premium buys are our mastheads, which is the equivalent to a homepage takeover, which takes over the homepage of the desktop of the mobile site for a day in that market. Or you have a reserved buy, which is guaranteed delivery of a certain volume of video impressions against a broad targeting audience segment.
  • Auction buys: With auction buys, often referred to as TrueView, the advertiser pays, and the user chooses to engage based on their bidding model of choice.
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Please note that the module slides are designed to work in collaboration with the module transcript document. It is recommended that you use both resources simultaneously.

Digital Marketing Resources:

Lisa Dunn

PPC Account Manager @ OMD Ireland

  • 6+ years’ experience digital marketing 
  • Expertise in PPC advertising
  • Experience in content strategy development, paid social, and display advertising
  • Work day-to-day across paid search, video advertising, and Google Shopping
  • Clients include telecoms and utilties, local Irish brands, large online retailers, and government agencies

The following pieces of content from the Digital Marketing Institute's Membership Library have been chosen to offer additional material that you might find interesting or insightful. While relevant to this module, you will not be assessed on this content.

You can find more information and content like this on the Digital Marketing Institute's Membership Library


    Display and Video Advertising
    Lisa Dunn
    Skills Expert

    This module begins with the fundamentals of Display and Video advertising and demonstrates how to set up and manage a YouTube channel. It covers the ad formats available on the Google Display Network and YouTube and shows how to set up and manage Display and Video campaigns. It also explains how to apply audience and contextual targeting, exclusions, remarketing, and bid adjustments to target Display and Video ads at the right audience. The module concludes by identifying the key metrics and tools to use to analyze and optimize the effectiveness of Display and Video campaigns.