Difference between targeting types and bid types

Targeting types are the ways advertisers target ads to your pages: contextual targeting, placement targeting, or interest-based advertising.

Bid types are the ways that advertisers bid in the auction for your ad space: cost-per-click (CPC) ads, which pay for valid clicks on ads, or cost per 1000 impressions (CPM) ads, which pay for valid user views of an ad.