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cpc and cpa

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Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

hi could like to know more about cpc and cpa

 

1. Understand for cpc is cost per click. let say the price is $1.00 so when a user clicks once we pay $1.00, if there is a lead conversion or no lead conversion we still pay $1.00

 

2. For cpa, if 100 user click and there is no lead conversion do we still need to pay?

Re: cpc and cpa

Collaborator ✭ ✭ ✭
# 2
Collaborator ✭ ✭ ✭

Hello,

 

Welcome to the Community,

 

It is good that you are thinking these problems through before jumping into actually testing the system .

 

1. Your bid is called Maximum CPC, but what you pay per click is your "Actual CPC" which in most cases is lower or equal to the MaxCPC.

 

If you use bid adjustments for certain conditions ( a bid increase for a location , for a device, for a time of the day) your MaxCPC increases for those conditions and the "actual cpc" may be higher for that context.

 

Much more information and examples are found here :

https://support.google.com/adwords/answer/2464960

 

2. The CPA bidding is just an optimised CPC bidding so yes you pay even if there is no conversion.

 

The system uses historical data to find patterns for users who might click on your Ad and bring you a conversion. A much simplified example would be this : if the system determines that most of your conversions occur between 6 and 8 PM, it raises the bid to help you gain more conversions during these hours.

 

Read more from here about the CPA bidding : 

https://support.google.com/adwords/answer/2472713?hl=en