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How Actual CPC is charged if conditions varies?

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi Every one, I have a question regarding Actual CPC consideration. Adwords says make your bid 0.01 cent above than your competitor varying on conditions. However, if the condition is totally different, I mean if my underneath competitor have $2 extra bid than me but still he is underneath me because of low quality score. How would adword charge me?

 

For example:

 

My bid for the one keyword is $3 and Quality score is 7 while my competitor's bid for the same keyword is $5 and quality score is 4. Now in the context my ad rank will be 21 and my competitor's 20 So I will be ranking one position above than my competitor. Now Adword says that your actual cpc will be 0.01 cent extra than your competitor if someone click on my ad. So according to my case what will be normally my actuall cpc. Also please don't forget that my Max bid is $3 and I dont want to be charged more than that. So if my competitor's bid is $5 so will google charge me $5 + 0.01cent? If not how it will be calculated?

 

Pleaes help...

Re: How Actual CPC is charged if conditions varies?

[ Edited ]
Collaborator ✭ ✭ ✭
# 2
Collaborator ✭ ✭ ✭

Hello,

 

"So according to my case what will be normally my actuall cpc."

Your advertiser bid 500 cents , his QS let's say it is 4/10 - his ad rank is 500 x 4 = 2000

Your bid = 300 cents, your QS = 7/10 , your ad rank is 300 x 7 = 2100 , so you should beat his position.

 

Your avg cpc = (his ad rank 500 x 4) / (your QS =7) =  285.7 (approximated to 286) + 1 cent = 287 cents=2.87 $ , it is not more than your MaxCPC.

 

 

 

 

Look at this video 

 

https://www.youtube.com/watch?v=a8qQXLby4PY&t=6m30s

 

Formula for avg cpc is another one. Your avg cpc is calculated as : [( the ad rank of the advertiser below you) divided by your QS ] +1 cent

 

You have some examples here

 

https://support.google.com/adwords/answer/6297?hl=en

 

"

  • If the advertiser immediately below you bids US$2.00, and if that advertiser's ad is the same quality as yours (and has equal-performing extensions and ad formats), you'd typically need to bid a penny more than US$2.00 to rank higher than that advertiser and still maintain your position and ad formats. With AdWords, that's the most you'll pay (about US$2.01), whether your bid is US$3.00, US$5.00, or more."

 

So

Your advertiser bid 200 cents , his QS let's say it is 10/10 

Your bid = assuming High enough to beat his ad rank for the calculation to occur, your QS = 10/10

 

Your avg cpc = (his ad rank 200 x 10) / (your QS =10) = 2$+1 cent

 

-------------

Example 2 from the help page 

 

  • " If the advertiser immediately below you bids US$2.00 and has a higher quality ad than you, you'll pay about a penny more than what's required to match that advertiser's higher Ad Rank (and still maintain your position and ad formats), but never more than your max. CPC bid (unless you’re setting bid adjustments or using Enhanced CPC)."

So

Your advertiser bid 200 cents , his QS let's say it is 10/10 

Your bid = assuming High enough to beat his ad rank for the calculation to occur, your QS = 5/10

 

Your avg cpc = (his ad rank 200 x 10) / (your QS =5) = 200x2=400 cents +1=4.01 $

 

[edited : expression for bid]

Re: How Actual CPC is charged if conditions varies?

[ Edited ]
Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Thanks Adrian,

Completely phenomenal.

Exactly, this was the formula I was looking for.

Thanks

Mike