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Can someone explain me the estimates graph?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Ok, Im new to this, and after defining which group of keywords matches the way I want to promote a customer website, I went to estimates and theres a graph that, well is kinda confusing,  in ad group and Ad keywords, the graph show on the left the quantity of clicks on left and the max CPC in USD below.
What I dont understand is if that means that every click I receive on the adword advertising will rise the maximum CPC. This is my case, I set a daily budget to 10 dollars and a bid of 9.15 USD, the CPC started at 0.26 USD but after 80 clicks is at 9.10 USD, from there the graph show how I will be receiving less clicks and less impressions.


So, I just can figure out that every click I received will increase the CPC and if I set a daily billing  and the CPC price is OVER it, my ad will be appearing less in google results.
Am I right?

Re: Can someone explain me the estimates graph?

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆

Hi Edwin,


Traffic estimate gives you an overview of no. of clicks, impressions ads may receive with mentioned budget and max. CPC.
It does not raise CPC, it just gives an estimate.

Below calculations are useful to understand the graph

Max CPC = Its a maximum amount you would like to pay for a click.
Actual CPC = It's an actual amount you pay for a click received. It could be <= Max CPC
Clicks in graph= No. of clicks your ads may receive in a day
Impr in graph = No. of times your ads might get displayed in a day
Cost in graph = Amount you would like to pay for a day
Avg CPC = The average amount you might pay for a click received

Now here you have mentioned daily budget as 10 USD with a bid 9.15 USD.

Now considering max CPC = 9.15 USD you will get <=1 clicks/day with budget fo 10 USD.

In an estimate you might see a graph with max CPC starting from 0.26 so you will get approx
10/0.26 =38 clicks and something like on graph
etc etc
Also you will get estimated clicks and impr on graph for your set budget and bid.

Now here you can compare if you reduce the bid you will receive more clicks with formula Cost/CPC = Clicks
If CPC increases clicks will be less for same cost.

You can try increasing the budget and see how many impr and clicks are expected for the keywords you entered.

So in short, it's an estimate and does not actually increase or decrease CPC/ cost.

Yes, now if you have 10 USD budget with max CPC= 9.15 and if you receive a click with actual CPC approx 8 USD you will get <=2 clicks only in a day. After receiving those clicks ads will stop getting trigerred due to limited budget.

You can refer to link below for more details on esimates (section - How to understand your traffic estimates)

Hope this helps.