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Max CPC

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

 

My bid on one of the keywords is $0.75 but when a visitor came to the website via that keyword, I was charged only $0.01.

 

Please let me know why there is such a big difference?

 

Regards

1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author shailendra
September 2015

Re: Max CPC

[ Edited ]
Collaborator ✭ ✭ ✭
# 4
Collaborator ✭ ✭ ✭

Yes and time of the day. If that brand has established a strategy that they get most of the conversions from hours 19 to 21, when their clients are conducting online searches to compare products and shop, they will not use a budget all day long, it will make more sense to keep their budget concentrated to receive more clicks in the profitable time space 19:00 to 21:00.

 

This also happens for weekend shoppers, who only have spare time to spend in weekends.

 

The difference from MaxCPC to average cpc is the bid bellow you in the competition .

 

If you have 1 click at 0.65 ( not an average of 1000 clicks) , that means that the person bellow you had an ad rank with a score of 1 bellow you. If you and him had equal QS scores on that keyword, his Max CPC would have been 64 Cents you don't pay you full MaxCPC but only the CPC that is needed to over-bid the one bellow you.

 

The best explanatory link for how adwords auctions take place is this video

 

https://www.youtube.com/watch?feature=player_embedded&v=MyBB5h20xoc

View solution in original post

Re: Max CPC

Collaborator ✭ ✭ ✭
# 2
Collaborator ✭ ✭ ✭

This means that 

 

1) For the hour that you had that click

2) For the location that your campaign was targeted at

3) For that "Search term" that matched your keyword

 

you had virtually no competition.

 

There was no-one bidding at that time on the search term that person typed. That does not mean that your keyword is "The king" , it just happened to match a certain search string . Look it up in the "search terms report", it might very well be a long tail search term.

Re: Max CPC

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Thanks for the reply Adrian. I got it. But the target keyword is a two words term and is a popular brand name. Few days back  paid the $1.36 for the same keyword but the location was a different country. So, I guess due to different location this happened, right?

 

My other question: Suppose the max CPC is $0.75 but the click results in $0.65. Now, what is the reason for the difference?

 

Regards

Marked as Best Answer.
Solution
Accepted by topic author shailendra
September 2015

Re: Max CPC

[ Edited ]
Collaborator ✭ ✭ ✭
# 4
Collaborator ✭ ✭ ✭

Yes and time of the day. If that brand has established a strategy that they get most of the conversions from hours 19 to 21, when their clients are conducting online searches to compare products and shop, they will not use a budget all day long, it will make more sense to keep their budget concentrated to receive more clicks in the profitable time space 19:00 to 21:00.

 

This also happens for weekend shoppers, who only have spare time to spend in weekends.

 

The difference from MaxCPC to average cpc is the bid bellow you in the competition .

 

If you have 1 click at 0.65 ( not an average of 1000 clicks) , that means that the person bellow you had an ad rank with a score of 1 bellow you. If you and him had equal QS scores on that keyword, his Max CPC would have been 64 Cents you don't pay you full MaxCPC but only the CPC that is needed to over-bid the one bellow you.

 

The best explanatory link for how adwords auctions take place is this video

 

https://www.youtube.com/watch?feature=player_embedded&v=MyBB5h20xoc

Re: Max CPC

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Thanks a lot Adrian!