Google AdSense Bid Types and Tips | Explained

Google AdSense has different bid types, and these affect the way publishers earn their revenue. It is important to know the bid types and how they work in order to determine your ad placement strategy in line with it, google adsense ads.

This article will explain how many bid types exist and also the three most important optimization techniques that can help to increase your AdSense revenue.

Table of Contents:

  • What is Google AdSense, and How Does It Work?
  • Google AdSense Bid Types
  • Google AdSense Optimization Tips

What is Google AdSense, and How Does It Work?

Google AdSense is one of the most well-known advertising platforms which allows advertisers to earn income from web monetization.

AdSense offers programmatic advertisements that are based on the websites of publishers’ audience and the content. To decide which ad should be displayed on the website of the publisher, AdSense runs a live auction which advertisers using Google Ads make bids and the bid with the highest value is the winner of the auction.

Google AdSense is perfect for small-medium-sized publishers (<100k monthly visits). It’s completely free to join, and the set-up process does not require any technical skills.

Let’s look at the bid types AdSense provides.

Which AdSense bid types exist?

There are four different bid types available in Google AdSense:

  • CPC (cost-per-click);
  • CPM (cost-per-thousand impressions);
  • Active View CPM (Active View cost-per-thousand impressions);
  • CPE (cost-per-engagement).

Google AdSense Bid Types

1. CPC (cost-per-click)

CPC payment model implies that the publisher is compensated each time a person clicks on an advertisement.

How much a single click costs will depend the value of your advertising inventory is to advertisers as well as the amount they’re willing to pay.

2. CPM (cost-per-thousand impressions)

In the CPM model, advertisers determine their prices for every 1000 impressions. CPM is a CPM model suggests that publishers will make money every time an advertisement is served to and viewed by users.

Within Google AdSense, CPC ads and CPM ads are competing with one another. The ad expected to generate the highest amount of profits for the publisher gets shown.

3. CPE (cost-per-engagement)

Through CPE advertisers choose an action the user must complete. In this case the advertiser is only liable only if the action is performed.

For instance an advertiser might choose to make a payment for each time a user hovers over a the rich media expandable ads for at 2 seconds or more.

google adsense ads

4. Active View CPM (Active View cost-per-thousand impressions)

Through Active View CPM advertisers receive a fee for each impression which are considered visible (i.e. at minimum 50 percent of the banner’s content can be seen for at minimum 1 second).

It is important to note that publishers receive only 68 percent of the revenues from the sold impressions of the bidding types while Google making the remainder.

What is the difference between cost-per-click (CPC) bids as well as cost-per view (CPV) bids?

Cost-per-view (CPV) is an auction method for advertising on video which only pay when a person watches a video advertisement for longer then 30 minutes (or responds to it, in the event of first).

However, a cost per click (CPC) refers to a method which allows advertisers to earn money when people click on their ads. The ad does not need to be an online video advertisement.

Which bidding strategy should you choose?

CPC is the main bid strategy used within Google AdSense which has the most potential for ad revenue.

CPM is the second highest-earning bid method in AdSense. But, because AdSense has just the one request partner (Google) and Google is the only demand partner, you will not be capable of selling your ad inventory at the best possible price , as you could using the header bid.

Remember that the earnings you earn in Google AdSense will depend on:

  • How high your CTR is
  • your audience’s value.

If your CTR exceeds 1 percent and does not fluctuate and doesn’t fluctuate, CPC is the best option. CPC strategy will yield the highest results.

Even the case that your CTR isn’t great however, if your audience is significant, CPC will still outperform the CPM model. Why? because in CPM, the CPM model, clicks aren’t guaranteed, and the cost of the impressions received is less clear.

To be sure, Google is bidding with higher prices for clicks that are assured (CPC) even when they have a low CTR and is attempting to offer as little as is possible when the clicks aren’t known (CPM) to achieve the target CPC. If the target audience is important but that the CTR is low then the CPM bid is even more risky for Google.

Learn More About Google Adsense Ads

Google AdSense Optimization Tips

1. Try Google Auto ads

google adsense ads

Source: Google AdSense

This feature allows AdSense to display ads automatically at the right times and offer an excellent user experience. This is ideal for users who do not want to invest excessive time and effort in the setup of ads.

Google’s technology can scan your site to determine the structure of your page and determine the best place to put advertisements based on:

  • the layout of your website;
  • the quantity of content
  • current ad placements.

2. Enhance the visibility of ads

Because that the CPC model is prevalent since the CPC model is dominant in Google AdSense, it’s important to make your ads optimized for better visibility. This will result in more ads being clicked and ultimately boost your ad’s revenue up.

To get a high viewability rate, you must follow these top methods:

  • Reduce the length of the page to one fold
  • Advertisements should be placed above the fold (ATF) (see an example);
google adsense ads
  • Use responsive web design and ad units that are responsive;
  • make sure your ads are shown by the time the user visits them.
  • Do not overcrowd the site with too many advertisements.

Learn More About Google Adsense Ads

3. Run A/B tests

google adsense ads

Google AdSense allows publishers to divide their website’s traffic to two different ad settings to determine which one is more effective. This can be done in the Optimization Explorationstab in the settings of your AdSense account.

In addition, by conducting experiments, you’re not harming your income stream. It is possible to run these tests to test auto ads, customized advertisements for search, and block controls. 

Conclusion

Keep in mind that AdSense is an CPC platform, meaning that your CTR as well as the value of your target audience are the primary factors that impact your advertising income.

There are however more sophisticated programmatic strategies that could surpass Google AdSense like header bidding.

Setupad’s header bidding service connects publishers to more than 15 SSPs (including Google) at the same simultaneously. Publishers are compensated per CPM basis, meaning that the revenue earned from advertising is more predictable and stable in comparison to CPC. CPC model.

Learn More About Google AdSense

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