Google Cost-per-click (CPC)

Google cost per click (real CPC) is the final cost charged per click. You are often charged less - sometimes less - than the higher cost per click (maximum CPC), which will be charged the most per click.

Real CPC is usually less than max. CPC because with the Google Ad Auction, you only pay the minimum required to clear the ad level limit and hit the Competition Level of a competitor below you. And if there are no competitors below you (for example, if there are no competitors other than you clear their Ad Rank thresholds), you only pay the booking amount. (See ad-level limitations to learn more.) Remember that your actual CPC may exceed your maximum size. CPC if, for example, you have enabled Enhanced CPC or if you have set a bid adjustment.

How does this work

We include auction auction quality (including expected click-through rate, ad compatibility, and landing page experience), size. CPC bid, Ad Rank limit, auction competition, personal search context, and expected impact of extensions and other ad formats to determine Ad Rank. When we estimate the expected impact of extensions and ad formats, we look at factors such as importance, expected click levels, and the prominence of extensions or formats on the search results page. Each ad category is used to determine where the ad came from and what types of extensions and other ad formats will display through the ad (whether ad or ad format will appear at all).

In search network ads, ad-level restrictions (and actual CPCs are generated) are usually higher in ads than search results in order to maintain a high quality impression and help ensure that real CPCs display the number of outstanding ads in the area. As a result, real CPC if you appear above search results is usually higher than real CPC if you appear below search results, even if there are no other advertisers below you immediately. Although you can pay more with one click, high-end ads tend to have higher click-through rates and may allow you to display certain ad extensions and other features that are only available in high-profile ads. As usual, you were never charged more than your size. CPC bid (unless you use default bidding tools).

Also be aware that ad auction competition can affect your actual costs with each click. If two ads competing for the same position have the same number of ads, each will have the same chance of winning that position. But as the ad position gap between the two ad advertisers grows, a high-quality ad will have a chance to win but also pay higher per click to benefit from the increased certainty of winning. This same pricing method applies to each ad position at the bottom of the search results page. In this way, your actual cost per click is affected not only by a competitor below you but also by competitors below them.

For example

Here is a simplified example of how Ad Rank and Actual CPC works. It does not count all of the Ad Levels and pricing items mentioned above, but instead aims to give you an overview of our algorithms:

Imagine five advertisers competing for more than four ad positions in search results on the Google search results page. The appropriate ad rate for each advertiser, is, 80, 50, 30, 10, and 5.

If the minimum ad rate required to show the above search results is 40, only the first two advertisers (with 80 and 50 ad positions) pass the minimum and show above the search results. An advertiser with an advertising position of 80 pays enough (Eg: the nearest charged unit, US $ 0.01) to hit an advertiser with 50 Ad Rank. Since there is no other eligible competitor, the advertiser 50 Level Ads pays enough to beat a minimum of 40 ad rankings.

If the minimum ad space required to display the search results below is 8, then two of the remaining three advertisers (with Ad Ranks of 30 and 10) will show up below the search results. An advertiser with a 30-position ad will appear in the first place under search results and will pay enough money to beat the advertiser with 10 Ad Ranks. An advertiser with a 10 ad position will display under that advertiser, and you will pay enough to hit a minimum of 8 ad ratings. An advertiser with 5 ad ranks has not met the minimum ad rating and therefore will not show at all.