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Question: On Google AdSense, please explain the different bid types (e.g. CPC bids, CPM bids, and Active View CPM).
Google AdSense is an advertising platform that allows website owners to monetize their content by displaying ads from advertisers. AdSense supports different bid types, which determine how advertisers pay for their ads to be displayed and how publishers earn revenue. There are three main bid types in Google AdSense: CPC, CPM, and Active View CPM. 1. CPC bids (Cost Per Click): CPC stands for Cost Per Click. As the name suggests, advertisers using CPC bids pay for their ads every time a user clicks on them. Publishers earn revenue based on the number of clicks the ads receive on their websites. This is a common bidding method for search and display campaigns as it encourages advertisers to create compelling ads that attract user clicks. 2. CPM bids (Cost Per Thousand Impressions): CPM stands for Cost Per Thousand (Mille) Impressions. In CPM bidding, advertisers pay based on the number of times their ads are viewed by the users, regardless of whether they engage with the ads. The payment is calculated per thousand ad impressions. This bid type allows advertisers to share their messages to a broader audience and is ideal for brand awareness campaigns. Publishers earn from the number of ad impressions on their website pages, regardless of user actions like clicks or conversions. 3. Active View CPM bids (Cost Per Thousand Viewable Impressions): Active View CPM bidding is an extension of the standard CPM method. This bid type focuses on viewability, meaning that advertisers only pay for the ad impressions that are considered viewable by the users. Google defines a viewable ad as one that is at least 50% visible on the screen for at least one second for display ads and two seconds for video ads. This bid type helps advertisers to ensure their ads are seen by users and not hidden on web pages. Publishers earn revenue based on the number of viewable ad impressions on their website, thereby encouraging them to optimize their site's layout and design for better viewability. Overall, each bid type serves a different purpose for advertisers, depending on their marketing goals. As a publisher, understanding these bid types can help you optimize your website to maximize ad revenue and provide better value to your advertisers.
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