There are Several bidding options available in the AdWords account. We have flexible Bid Strategies that can be implemented to manage the AdWords costs and CPCs. Join our AdWords Training Course or our Digital Marketing Training in Hyderabad program to understand these features.
What is a Bid (Max.CPC)
Max. CPC is the highest amount an advertiser is willing or interested to pay per each click of the ad. However, every time the ad gets a click Google will not charge him Max. CPC though. So how much Google Charges an advertiser for each ad click is based on the Ad Auction which is dynamic in nature.
Google always charges an advertiser based on the Ad Auction/competition involved. How much Google charges you for each click is called Actual CPC i.e. Act CPC.
What is Actual CPC?
It is the actual amount Google charged an advertiser for each ad click. Also note that, Actual CPC will never be greater than the Max CPC. In fact, Actual CPC is always less than or equal to Max CPC.
This means Google will never charge you more than you are willing to pay. But what if the auction bid is more than an advertiser’s Max CPC, then the advertiser’s ads will be pushed down so it may occupy lower ad position or may not even get to display the ad.
So, Act CPC <= Max CPC
Max CPC >= Act CPC
So, we can bid how much ever you want, but still Google will only charge you based on the
competitor. i.e. Actual CPC. This whole punctuality of charging less for an ad click to an advertiser is called as AdWords Discounter.
To know more about Bidding, please read the Functionality of Bidding article.
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