One Factor the Google Ads System Uses to Calculate an Ad’s Actual Cost-Per-Click (cpc) Is The:

One factor the Google Ads system uses to calculate an ad’s actual cost-per-click (CPC) is the:

  • maximum CPC bid of the ad showing one position lower on the pagemaxi
  • maximum CPC bid of the ad showing in the #1 position on the page
  • location targeting of the ad showing one position lower on the page
  • cost-per-thousand impressions (CPM) of the ad showing one position lower on the page

Right Answer:

  • maximum CPC bid of the ad showing one position lower on the page

Explanation:

https://support.google.com/google-ads/answer/6326?hl=en

A bid which is set to determine the highest amount of money that you are willing to pay for a click on your ad is considered as the Maximum CPC bid. If any user clicks on your ad, it won’t cost you more than the maximum cost-per-click or max. CPC that you have set for the ad.

  • For an example, if you set $1 maximum of CPC bid for your ad, then you are never going to pay more than $1 for each click on your ad.
  • The actual amount you pay for a click is defined as the Actual CPC. This Actual CPC will be shown in Avg.CPC column.
  • If you set a higher bid for your ad, it generally helps you ad to be shown in higher position on the page.

You will have to choose between manual bidding and automatic bidding. In manual bidding, you have to choose your bid amounts while in automatic bidding, you set a target daily budget and the Google Ads system will automatically adjust your max CPC for the ad.

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