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What Does "Bid Gap Effect" in AdSense Mean?
AdSense uses advertisements from Google AdWords to display on your site. Google AdWords is a PPC system and ad slots are determined by bid prices. The highest bidder would earn a higher position in the search. this also applies to content auctions.
This is seen from the advertiser’s point of view. From the publisher’s side, a higher bid means higher revenue after an ad click.
The bid gap is the price difference between Google ads. First place would always cost more and each lower position would cost less.
Due to fierce competition, the bid gap between the first 4 listings would be very minimal. Once you get past that, the difference increases dramatically.
There may be a bid of $7, $6.90, $6.80, and $6.75 for the top four bids and may drop to 10 cents for fifth position. adverts published is 4.
See the staggering difference.
This bid gap can lead to lower revenue if you show too many ads.
If you run the maximum number of ads allowed by Google, you will show ads with the highest bids as well as those with a very low price bid.
Because there would be more low priced ads, there are chances that these will be clicked more than others.
You must have seen in your Google AdSense reports that a few clicks generate 2 cents or 5 cents, etc. If the eCPM is significantly lower than another unit in your channel reports, that indicates a huge bid gap.
If your clicks on your site aren’t generating revenue, it’s time to take action.
Another cheap bidding factor is “Made For AdSense” sites. These sites post low-bid ads through AdWords and then use that traffic to redirect to their own site, which also contains AdSense ads with higher bids.
They rely on other people’s content to push their own content less website.
In such a situation, reducing the number of ads displayed on your site can help.
You will get fewer clicks because the total number of ads will decrease, but the revenue per click will increase.
However, you will need to monitor the situation to see if reducing the number of ads helps you increase your income.
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