As a publisher, you should be familiar with Google Adsense. On AdSense, the 3 major bid types you’d find in your dashboard or report are CPC bids, CPM bids, and Active view CPM.
What do these mean? How can this information help you as a publisher to make more money on AdSense?
What does CPC Bids Mean on AdSense?
In the context of AdSense, CPC (cost-per-click) bids refer to the amount of money an advertiser is willing to pay for each click on their ad. In other words, with CPC bidding, an advertiser pays each time someone clicks on their ad, regardless of how often the ad is shown (impressions).
When setting a CPC bid, the advertiser sets a maximum amount they’re willing to pay for each click. They can also set a daily budget for the campaign. This means that the advertiser’s ads will stop showing when the daily budget is reached.
As a publisher, you can only earn from CPC bids ONLY when a user clicks on the ad displayed on your site.
To earn more from CPC bids, place ads above the fold (before your content) or under paragraphs 1 or 2, or both. Ads in these positions get the most clicks.
What does CPM Bids Mean on AdSense?
From AdSense’s perspective, CPM bids mean how much you’ve earned for every 1000 impressions you get on AdSense ads across your site(s).
In advertising, CPM (cost-per-thousand impressions) bid refers to the amount of money an advertiser is willing to pay for every 1,000 impressions of their ad when using the AdSense program.
CPM is a popular method of paid advertising, especially for brand awareness campaigns and reaching a large audience. It’s a good way to increase visibility for your brand and can be a cost-effective way to generate awareness among potential customers.
As a publisher, one way to earn more from CPM bids is by displaying a 300 X 600 px banner ad on your sidebar and keeping it sticky or floating. Make sure there is no other ad or item under it in order to get the best performance on your floating ad.
What does Active View CPM Mean on AdSense?
Active View CPM (cost per thousand impressions) is a cost model that is similar to traditional CPM. However, it is different.
In traditional CPM, an advertiser is charged every time their ad is shown 1,000 times, regardless of whether the ad was actually viewed by the user.
As a publisher, Active View CPM is how much you’ve earned from Active CPM ads displayed on your site. In most cases, it’s usually your lowest earnings in the 3 bids. Why? Very few advertisers make this bid.
Furthermore, from the advertiser’s perspective, an advertiser is only charged when at least 50% of an ad’s pixels are in view for at least one second.
Active View CPM is a way for advertisers to ensure that their ads are being seen by potential customers.
It eliminates the possibility of an advertiser being charged for an ad that was not viewed by a user. How? it only charges when the ad has a chance of being seen.
This makes Active View CPM more effective than traditional CPM. It guarantees that the advertiser’s ad is being seen by the target audience.
Active View CPM is only available for display ads and video ads. It is not applicable to text or search ads.
As a publisher, there is no straightforward way of improving Active CPM bids or earnings on your site.
Which is the best: CPC Bids, CPM Bids, or Active View CPM?
As an advertiser, the best bids will depend on the specific goals and objectives of your advertising campaign.
CPC bids are best if your primary goal is to drive website traffic or sales. With CPC, advertisers only pay when someone clicks on their ad. So it can be a cost-effective way to generate leads or make sales.
CPM bids are best if your primary goal is to increase brand awareness and reach as many people as possible. With CPM, you pay for every 1,000 impressions, regardless of whether someone clicks on your ad. So it can be a good way to increase the visibility of your brand.
Active view CPM, as I mentioned earlier, is a cost model in which an advertiser is charged only when at least 50% of an ad’s pixels are in view for at least one second. This bid is best if your primary goal is to reach the people who are most likely to see and engage with your ad.
Nonetheless, as a publisher, make conscious efforts to prioritize earnings from CPC and CPM bids. Active view CPM bids are a bit out of your control.
In summary, CPC bids deal with ad clicks, CPM bids deal with Ad Impressions, and Active CPM deals with a mix of (video) views and ad impressions.
To be clear, publishers cannot make money when a CPM bid (or Ad) is clicked. Or when CPC bid (or ad) is viewed.
While AdSense is good for beginners, I strongly recommend that you join Ezoic. Why? Because you are certain to make more than double of what you earn on AdSense. Their requirements are easy. See for yourself the clear difference between Ezoic and Adsense.
Finally, see how to withdraw less than $100 from AdSense.