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

Right Answer:

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

Explanation:

https://support.google.com/google-ads/answer/6366577?hl=en

Google Ads Auction is a procedure where you bid a certain amount on your ads for your ad campaign. Accordingly, your ads will be shown on both the Search and Display Networks. However, you need to make sure that you are complying with three specific details as far as the ads are concerned.

There are 3 main factors in the ad auction that determine which ads appear, and in what order:

  • Your bid – When you fix your bid, you’re reporting to Google Ads the maximum amount you’re amenable to pay for a click on your ad. How much you actually end up paying is often less, and you can change your bid at any time.
  • The quality of your ads – Google Ads also looks at how appropriate and beneficial your ad and the website it associates to are to the person who’ll see it.
  • The expected impact from your ad extensions and other ad formats – When you design your ad, you have the opportunity to add supplementary information to your ads, such as a phone number, or more links to specific pages on your site.

These are called ad extensions. Google Ads estimates how extensions and other ad formats you use will impact your ad’s performance. So even if your opposition has higher bids than yours, you can still attain a higher position at a lower price by using highly relevant keywords, ads, and extensions.

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