One factor the AdWords system uses to calculate an ad’s actual cost-per-click (CPC) is the:

One factor the AdWords system uses to calculate an ad’s actual cost-per-click (CPC) is the:

  • actual cost-per-click (CPC) of the ad showing one position lower on the page.
  • location targeting of the ad showing one position lower on the page.
  • cost-per-thousand impressions (CPM) of the ad showing one position lower on the page.
  • Ad Rank of the ad showing one position lower on the page.

The correct Answer is:

  • actual cost-per-click (CPC) of the ad showing one position lower on the page.

Real cost-per-click (CPC): Definition

Your real cost-per-click (real CPC) is the last sum you’re charged for a tick. You’re regularly charged less – once in a while considerably less – than your most extreme expense per-click (max. CPC) offer, which is the most you’ll normally be charged for a tick.

Real CPC is regularly not as much as max. CPC on the grounds that with the AdWords closeout, the most you’ll pay is what’s negligibly required to hold your advertisement position and any promotion groups appeared with your advertisement, for example, sitelinks. Remember that your real CPC may surpass your maximum. CPC if, for instance, you’ve empowered Enhanced CPC or in the event that you’ve set an offer modification.

How this functions

We join the parts of Quality Score (expected clickthrough rate, promotion importance, and greeting page encounter), the maximum. CPC offer, and the normal effect of augmentations and other promotion configurations to decide Ad Rank. While assessing the normal effect of expansions and promotion designs, we consider such components as the pertinence, expected clickthrough rates, and the unmistakable quality of the augmentations or arrangements on the indexed lists page. Every sponsor’s Ad Rank is then used to figure out where the promotion shows up and what sorts of expansions and other advertisement arrangements will appear with the promotion (or whether the promotion or promotion organization will show up by any stretch of the imagination).

For promotions on the Search Network, the base Ad Rank required for advertisements above indexed lists is for the most part more prominent than the base Ad Rank required for promotions underneath list items. Therefore, the real CPC when you show up above list items could be higher than the genuine CPC on the off chance that you show up underneath indexed lists, regardless of the possibility that no different publicists are promptly beneath you. In spite of the fact that you may pay more per snap, top advertisements for the most part have higher clickthrough rates and may permit you to demonstrate certain promotion expansions and different elements accessible just in top promotion positions. As usual, you’re never charged more than your maximum. CPC. offered.