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What is the meaning of competition high, medium, and low?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I am new to adword, Just not able to understand that how to decided bidding amount and how is it different from cost-per-click? Kindly help me

1 Expert replyverified_user

Re: What is the meaning of competition high, medium, and low?

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆
Hello,

Before Choosing a bid amount you have to consider the competition on keywords in you campaign, estimated bid amount, your daily budget, profit/sale and your advertising goals.

Max CPC bid is the maximum amount you want to pay for a click on your ad and Actual Cost per click or actual CPC is final amount you are charged for a click.

Hope that helps!

regards,
Rahul Goel

Re: What is the meaning of competition high, medium, and low?

Rising Star
# 3
Rising Star
Hi Faizan,

CPC (cost per click) is the actual amount charged when a user clicks your ad and Max CPC is the maximum you're willing to pay for a click.

AdWords decides the actual cost per click based on the next ad (below yours) in the auction.
Please watch this video to understand more about Ad auction: https://www.youtube.com/watch?v=PjOHTFRaBWA

Hope that helps!
Sumanth Sridhar