Google has just initiated a new ad format for its AdSense program. It is called “Expandable ads†and is currently available for European and North American visitors only.
“Expandable ads are rich media ads that can expand beyond the original size of the ad unit, following a user-initiated action.â€
These ads will only expand when the user will click and interact with the ad barring mouseovers and rollovers. It is done to make sure that the accidental expansions are kept away from your site! In order to use “expandable ads,†you need to enable image ads in your AdSense account and add the AdSense code.
Here is how the format beneficial for the advertisers:
“This creates more real estate for the ad, allowing for more interaction from interested users. For instance, expandable ads may stream a movie trailer, show video game clips, or display various views of an item for sale.â€
What about the earnings?
The basis of earning can be either CPC (cost-per-click ) or CPM (cost-per-impression ). As far as the CPC revenues are concerned, they only apply for actual visits to the ads landing page, and not when a user clicks to expand the ad.

Here are a few policies that are linked with the working of Expandable ads:
Click on this link (FAQ) for more information!
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