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auction and actutal cpc

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# 1
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Hi dear all,

 

As we known, for the search network, the actual cpc depends on the competitor below you on the search result, and we have the formula:   Actual CPC(top position)= Ad rank(second position)/QS(top position).

 

For instant

 

Position              QS         Max cpc        Actual cpc

1                         10           3                   2.8

2                          7            4

 

First posion' s actual cpc will be 2.8,  my question is : if there are only two ads shown, what about the second ad's actual cpc? 

 

Or if there is only one ad shown, how to calculate its actual cpc?

 

Thanks!

2 Expert replyverified_user
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Accepted by MosheTLV (Top Contributor)
September 2015

Re: auction and actutal cpc

Top Contributor
# 2
Top Contributor
Hello Han,

If you want to know how the actual CPC is calculated, watch the video in the link below.

https://support.google.com/adwords/answer/1704431

And to your question - how the actual CPC is calculated when there is only one ad - check the link below.

http://adwords.blogspot.in/2007/10/common-misconception-revisited.html

Hope this helps,

Deepak

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Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: auction and actutal cpc

Top Contributor
# 2
Top Contributor
Hello Han,

If you want to know how the actual CPC is calculated, watch the video in the link below.

https://support.google.com/adwords/answer/1704431

And to your question - how the actual CPC is calculated when there is only one ad - check the link below.

http://adwords.blogspot.in/2007/10/common-misconception-revisited.html

Hope this helps,

Deepak

Re: auction and actutal cpc

Follower ✭ ☆ ☆
# 3
Follower ✭ ☆ ☆
Hi Deepak,

Thank you very much for your kindly reply, i went through two links above, but didn't get it, because it didn't indicate how to calculate the actual CPC of the last position ad. If there are only 4 ads shown on the search result page, the actual CPC of 4th position ad depends on 5th position ad's rank? even 5th position ad doesn't show, can I understand like that?

Re: auction and actutal cpc

Top Contributor
# 4
Top Contributor
Hi Han,

In one line answer, if there are no competitors of the bottom ads, then AdWords would charge min CPC $0.01.
But it is hard to say there is no competitor who is bidding on your keywords in same market place and same time.
If you don’t see the ads at the bottom, it does not mean no one is bidding on same keywords, as every ad has to qualify some threshold to appear on SERP. That ad does not meet those criteria to appear on Google 1st page.
It you don’t see the ads on 5th positions, it may be the reasons of time, location, device and search terms and its relevancy with Ad copy. You cannot say quickly that no one is bidding one particular keyword.
I have seen some circumstances, when Google charged Min CPC only $0.01.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: auction and actutal cpc

Follower ✭ ☆ ☆
# 5
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Hi Rakesh,

I am glad to see your reply. Let's say if my ad is on the 4th position( last one) and at that time there is really no any other ads below mine, even on the bottom or other pages, my actual cpc would be 0.01?

Thanks

Re: auction and actutal cpc

Top Contributor
# 6
Top Contributor
Hello Han,

It 'can' be 0.01

"The minimum CPC for a keyword is not related to the number of competitors one has that keyword. Instead, minimum CPC is dependent on the Quality Score of the keyword, as it's used in the advertiser's account." (Please refer link 2 Smiley Happy )