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I think Google also optimizes for lack of a better term, ‘engagement’. So, even if an ad has a higher margin, it may be better to ‘slot in’ a lower margin ad t
by daniellarusso 6y ago
I think Google also optimizes for lack of a better term, ‘engagement’.
So, even if an ad has a higher margin, it may be better to ‘slot in’ a lower margin ad that would get more aggregate clicks, so the net profit is higher.
Poor example:
Ad is $10 per click but is only clicked once per month versus an ad that is $1 and clicked 20 times per month.
- dillondoyle 6y agoProbably better for publishers and consumers too. That's part of FBs algo too, though the CPC bidding is outdated in FB I think it leads to a bunch of crap you're just optimizing for bounces & fat thumbs.