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CPC vs bidding

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello folks,


So I have recently been using google AdWords, but I find something strange. My keyword bid is set to $5, but I am only being charged $0.89. I figured that my cost would be $5 per click. How does it actually work?!


1 Expert replyverified_user
Marked as Best Answer.
Accepted by MosheTLV (Top Contributor)

CPC vs bidding

Top Contributor
# 2
Top Contributor

Hi @Damen Nicholas A,


The bid is the max amount that you are willing to pay for a click. The actual amount you are charged is typically lower, occasionally much lower. The reason is that the game is auction based and a lot depends on the number of your competitors and how heavily they bid against you. For more details, please visit the help page linked-to below.


***   Auction   ***