How Much Are You Charged for A Click on Your Google Ads Ad?

How much are you charged for a click on your Google Ads ad?

  • You’re charged only the minimum amount needed to maintain your ad’s position.
  • You’re charged $0.01 for every click.
  • You’re charged the full amount you bid.
  • You’re charged 10 cents more than the next highest bid.

Right Answer:

  • You’re charged only the minimum amount needed to maintain your ad’s position.

Explanation:

https://support.google.com/partners/answer/6297

Pay-per-click (PPC), also known as cost per click (CPC), is an internet promotion pattern used to focus traffic to websites, in which an advertiser pays a publisher like Google when the ad is clicked.

Pay-per-click is generally correlated with first-tier search engines. With search engines, advertisers generally bid on keyword phrases appropriate to their end market. In contrast, content sites commonly charge a fixed price per click rather than use a bidding system.

PPC “display” advertisements, also known as “banner” ads, are manifested on websites with similar content that have admitted to show ads and are typically not pay-per-click advertising. Social networks such as Facebook and Twitter have also adopted pay-per-click as one of their advertising patterns.

The formula to calculate the Cost per Click is as follows:

  • CPC = Cost to an advertiser / Number of clicks

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