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Actual CPC = (AdRank to hit /Quality Score of Advertiser) + $.01

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AdRank = Max. CPC x Quality Score

AdRank is measured by multiplying the maximum cost per click bid that the advertiser is willing to pay by the Quality Score of that advertisers keyword. Ad position is then calculated by the advertiser’s AdRank. According to that advertisers ad will be positioned on highest or lowest position in Google search and content networks

Actual CPC = (AdRank to hit /Quality Score of Advertiser) + $.01

An advertiser’s actual CPC is measured by dividing the AdRank to hit (the AdRank of the competitor below them) by their own Quality Score plus $.01. The least positioned ad will be the minimum price recommended by Google to display on the Adwords page.

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Re: Actual CPC = (AdRank to hit /Quality Score of Advertiser) + $.01

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Was this intended for a different thread?
Sumanth Sridhar