Drew is selling math textbooks and using cost-per-click (CPC) bidding for his campaign. What’s the final cost each time his ad is clicked?

Drew is selling math textbooks and using cost-per-click (CPC) bidding for his campaign. What’s the final cost each time his ad is clicked?

  • The projected maximum cost-per-click (max. CPC)
  • The average amount charged each time someone clicks on his ad
  • The average amount needed to make the ad appear somewhere on the page
  • The minimum amount needed to maintain a higher rank than the rank held by the next-highest bidder in the auction

The correct answer is:

  • The minimum amount needed to maintain a higher rank than the rank held by the next-highest bidder in the auction

Explanation: Actual CPC is often less than max. CPC because with the AdWords 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 sitelinks. You pay just enough to beat the Ad Rank of the advertiser with the next highest Ad Rank (or the minimum Ad Rank necessary to appear in that position).

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