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


Google analytics individual qualifications - answers - test exam

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

  • Maximum CPC bid 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 maximum CPC bid of the ad showing one position lower on the page is what Google Ads uses to calculate your ad’s cost-per-click (CPC).

Explanation

Just like in any bidding scenario, your maximum bid is rarely what you actually pay for the ad spot. The Google Ads auction ensures that you only pay the minimum amount required to beat the maximum bid below your own.


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