Adwords Fundamentals

All other things being equal, if you’ve set a maximum CPC bid of $1.00 for your ads, and if the next most competitive bid is $0.50 for the same ad position

All other things being equal if you’ve set a maximum CPC bid of $1.00 for your ads, and if the next most competitive bid is $0.50 for the same ad position, what is the actual amount you’d pay for that click?

  • 01
  • 5
  • 51
  • 1

The correct answer is:

  • 51

Explanation: Your actual cost-per-click (actual CPC) is the final amount you’re charged for a click. You’re often charged less sometimes much less than your maximum cost-per-click (max. CPC) bid, which is the most you’ll typically be charged for a click.

Example:

  • If the minimum Ad Rank necessary to show above the search results is, say, 40, only the first two advertisers (with Ad Ranks of 80 and 50) exceed the minimum and show above the search results. The advertiser with the Ad Rank of 80 pays just enough (Ex: rounded up to the nearest billable unit, which in the U.S. is $0.01) to beat the advertiser with the Ad Rank of 50. Since there’s no other eligible competition, the advertiser with the Ad Rank of 50 pays just enough to beat the minimum Ad Rank of 40.

More read: https://support.google.com/google-ads/answer/6297

Ali Raza

Ali Raza is a Web Developer and Digital Marketing Consultant.

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