All Other Things Being Equal, if You’ve Set a Maximum Cost-Per-Click (max. 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?

All other things being equal, if you’ve set a maximum cost-per-click (max. 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?

  • 0.51
  • 0.5
  • 1
  • 1.01

Right Answer:

  • 0.51

Explanation:

Advertisers pay certain amounts of money when it comes to promoting their products or services on the internet. It is regulated and maintained by Google itself.

However, the amount of money that the advertisers need to pay can be decided by the advertisers themselves. Based on that, it will be easily shared across the total time period in contention.

When it comes to bidding a certain sum of money, the advertisers take help of these types of biddings:

  • CPA
  • CPC
  • CPM etc.

Now, it is clear that when it about pay per click or cost per click, the advertisers will be paying a certain amount of money whenever their advertisements are clicked.

However, the bids vary from advertiser to advertiser. As the question expresses if the highest bidder has set $1 per click on their ads and the second option is $0.50, then the highest bidder will have to pay $0.51 only.

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