1、a Simone Perrin, Garrett Gunther, Jonathan Anderson, & Michelle Dadourian production Bid pricing Once the user chooses his bid, the advertisement enters the auction. “Designed to maximize the value created for users and advertisers” Takes into consideration Bid Past performance Quality The Bid Amoun
2、t you are willing to spend per click or per thousand impressions Bid Range Indicates price other advertisers are willing to pay to target the same demographic Actual Cost Cost necessary to win the bid (“competitive price”) Our example: We bid $0.10/click for our ad we are willing to spend $0.10 for
3、every users click Suppose in the morning, less advertisers are competing with us in the auction we only pay $0.05/click (lower competitive price) In the afternoon, advertisers bid higher as the value of ad placement increases (higher traffic) we pay $0.08/click This system allows people to bid max C
4、PC/CPM to strengthen ad position while only being charged the true competitive price. Ads are also evaluated on their eCPM For CPC campaigns: eCPM = CPC bid * CTR For CPM campaigns: eCPM = CPM Based on # of “Likes” and Xs Ads that are misleading low quality scores Ads that facilitate the user experience high quality scores Consistently located on the right-side column of the page Located under “Sponsored” Up to 5 ads displayed per page Soon. Homepage will only display 1 premium ad
