If you are running Google ads on your website you can find plenty of valuable information about them in your AdSense account. One of them is how much money you have earned through different bid types. This information should help you to decide where to place particular ads.
Possible bid types are:
- CPC (cost per click),
- CPM (cost per 1000 impressions),
- Active View (cost per 1000 visible impressions),
- CPE (cost per engagement).
But who exactly bids? And where does it happen?
Advertisers use Google AdWords to deliver ads to your website. They take part in an ad auction through which AdWords determines which ads will appear in what order at a particular ad placement.
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Cost per click (CPC)
Cost per click (CPC), or from the publisher’s perspective, revenue per click (RPC), was the first type of bidding. During CPC bidding, advertisers state the maximum price they are willing to pay for clicks on their ads. Publishers will earn some money, only if the visitors click on the ads.
Advertisers use CPC bidding when their goal is to bring the visitors to their website. CPC depends on the advertisers and on how much are they willing to pay for advertising. As a general rule, they will be willing to pay more for more expensive products and services.
As a publisher you can see how much you have earned through this type of bidding choosing the “Clicks” tab in the Performance reports of your AdSense account. This will automatically set the Bid types filter to CPC bids and apply it to your visitor data.
Cost per 1000 impressions (CPM)
With this type of bidding, the advertisers state the maximum price for 1000 impressions. Contrary to the CPC type of bidding visitors do not have to click on the ads for you to earn some money. It is enough that the ad is technically loaded by visitors. “Technically loaded” means that the ad content is completely loaded on your site. It is not needed that the ad is actually visible on the current position of the browser window. Advertisers use CPM bidding when their goal is to get their name or logo in front of lots of people.
In your Performance report you can see how much your site earned through this type of bidding if you choose the “Views” tab, which will automatically set the Bid types filter to CPM Bids.
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Active View CPM
The newest bid type in AdSense is Active View CPM. Active view is a percentage of the visible impressions. If advertisers chose this type of bidding they will pay only for viewable impressions. An impression is considered to be viewable if it fulfills two conditions:
- at least 50% of the ad is visible within the visitor’s browser window
- the ad was visible for more than 1 second.
In order to see how much you have earned through this type of bidding you should choose the tab Active Views, which will automatically set the Bid types filter to Active View CPM.
Cost per engagement (CPE)
Engagement is a particular action which should be performed by the visitor and that is defined by the advertiser. With this type of bidding advertisers pay only when the visitors interact with their ads in this particular way. Examples for interactions are:
- hovering over the ads for some time in order to expand them
- taking a poll
- taking a product tour
- starting a video ad
- email sign-up.
If you want to see how much you have earned through this type of bidding you should choose the tab “Engagements” in your Performance report, which will automatically set your Bid types filter to CPE bids.
Which bid type earns the most?
Currently, CPC bid type is still the most used and therefore earns the most money. By comparison, other bid types earn significantly less. Of these, CPM often is second in earning followed by Active View and CPE. However, since Active View is a fairly new bid type its earning potential will probably increase in the near future.
This observation is based on our websites. What are your experiences? Do your websites behave the same or not? Did you find this article helpful? Leave us a comment below…