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 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.
- Ad Rank of the ad showing one position lower on the page.
The Correct Answer is: maximum CPC bid of the ad showing one position lower on the page.
Explanation: Theone factor the Google Ads framework uses to compute a promotion’s genuine expense for every snap (CPC) is, most extreme CPC bid of the advertisement showing one position lower on the page/Actual expense per-click (CPC) of the advertisement showing one position lower on the page.
Assuming the publicist promptly underneath you offers US$2.00, and in case that sponsor’s promotion is similar quality as yours (and has equivalent performing expansions and promotion designs), you’d regularly need to offer a penny more than US$2.00 to rank higher than that promoter and still keep up with your position and advertisement designs. With Google Ads, that is the most you’ll pay (about US$2.01), regardless of whether your bid is US$3.00, US$5.00, or more.