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How does Google calculate actual amount you pay per click on Google Adwords

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Google AdWords
from Brett Stark

How Google calculated actual amount you pay per click on Google Adwords

Google Adwords is an auction on Pay-Per-Click (PPC) advertising system where you can advertise PPC the maximum amount you wish to receive for each click on your advertising with Google.

set to pay an advertiser you compete in a real-time auction every time a keyword triggers your ad. Adwords is a “Vickery” Art Auction. In a Vickery auction once it is a winner, the actual purchase price is not the maximum amount of money, it’s one cent more than the bid of the second highest bidder. Google Adwords adds a twist to this, as determined by the successful bidder ranking not maximum bid.

Never Pay For Pay Per Click Advertising Adwords Exposed back

Understanding to determine the way that Google Adwords PPC is one of tenderers who has any real-time auctions is won largely on the creation of a consistent and profitable strategy when participating in the Google Adwords PPC program.

The Google Adwords Quality Score

The Google AdWords system for determining the PPC auction is based on the belief that high quality creatives to win benefits for all parties involved. If the ads that Google displays the search ends meet requirments of the claim that this benefits advertisers, seekers, publishers and Google alike. They call this “relevance”.

Since the highest bidder gets the highest position and the highest position gets the most clicks, the destination for you as an advertiser is Google in the highest position for your ad creative to get the lowest possible cost per click (CPC) .

Every time a search initiated and an auction has taken place, is one of the Google ads triggered by ‘ranking’ is. The position of each ad on its Ad Rank ‘


Ad Rank = ‘Maximum Cost Per Click “x” quality factor “

Since the’ Ad Rank ‘is not only the maximum amount that an advertiser has not always win the highest bidder bid. A contract is an additional set of elements that together the Google Quality Score


Google Quality Score & Cost Per Click (CPC)

usually the higher an ad the quality factor, the more relevant it is for the keywords on which it is bound. For ads highly relevant to the user, they tend to more clicks and as a result of a higher clickthrough rate (CTR). Google says that users will find the ad relevant and click to read more. A higher CTR can increase a keyword’s Quality Score, which in turn increases the ranking. As a PPC advertiser, this means that you increase or maintain your position while lowering the actual cost per click that you pay for.

In Google stop ads for keywords that have a low Quality Score. If an ad has a low score on a particular keyword, it means that users are not determined that the display to their needs, and Google is the key word, by disabling inactive.

a practical example of how the Google Quality Score Works

PPC bidding system that runs Google Adwords is a complicated, because we can never be quite sure of the quality factor of tenders .

assumptions about the Google Quality Score, here is an example of deciding how the Google AdWords system would be someone who wins a PPC auction and how much they pay per click.

I have 3

PPC bidders to show how it works, but in reality there are many, many more bidders are included in each PPC auction.

The series, entitled “Actual CPC” shows how much would each candidate for their Adwords click on the following sure that particular auction.

Quality Score = 3
Max CPC = £ 0.55
Ad Rank = 1.7
Actual CPC = £ 0.34

Big Ears
quality factor = 1
Max CPC = £ 1.00
Ad Rank = 1.0
Actual CPC = £ 0, 84

PC Plod
quality factor = 1
Max CPC = £ 0.80
Ad Rank = 0.8
Actual CPC = £ 0 , 41

calculate how much each bidder pays, Google first calculates the ranking for each PPC bidders. The ranking is multiplied Google Quality Score by the Maximum CPC. Above we have the ads after the ad ranking and we can see that Noddy has won this auction and its PPC ad is in top position in search engine results.

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