Adwords Fundamentals

When someone clicks your ad, the actual amount you’re charged will be:

When someone clicks your ad, the actual amount you’re charged will be:

  • The minimum needed to hold your ad position or 50% of your maximum cost-per-click (max. CPC) bid, whichever is greater
  • The minimum needed to hold your ad position but never less than 50% of your maximum cost-per-click (max. CPC) bid, whichever is greater
  • The minimum needed to hold your ad position but never more than 120% of your maximum cost-per-click (max. CPC) bid, whichever is greater
  • The minimum needed to hold your ad position, under the maximum cost-per-click (max. CPC) limit

The correct answer is:

  • The minimum needed to hold your ad position, under the maximum cost-per-click (max. CPC) limit

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. Actual CPC is often less than max. CPC because with the Google Ads auction, the most you’ll pay is what’s minimally required to hold your ad position and any ad formats shown with your ad, such as site links.

Example:

  • If the minimum Ad Rank necessary to show below the search results is 8, then two of the three remaining advertisers (with Ad Ranks of 30 and 10) will show beneath the search results. The advertiser with an Ad Rank of 30 will appear in the first position beneath the search results and will pay just enough to beat the advertiser with an Ad Rank of 10. The advertiser with an Ad Rank of 10 will show beneath that advertiser and will pay just enough to beat the minimum Ad Rank of 8. The advertiser with an Ad Rank of 5 didn’t meet the minimum Ad Rank and so won’t show at all.

More read: https://support.google.com/google-ads/answer/6297?hl=en

Ali Raza

Ali Raza is a Web Developer and Digital Marketing Consultant.

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