Understanding CTR, CPC and Charging Mechanism
Google AdWords
Description:
Google AdWords
provides a great platform for displaying ads on the search engine. To charge
you for the ads we need to understand a few concepts. Click through Rate or CTR
is no. of clicks that you get divided by the number of times the ad has been
viewed. CPC is the Cost per Click this is the amount that you actually pay upon
each click a person makes on your ad. Google charges you based on a price bid.
When you submitted an ad, you’re expected CTR is calculated and your bid (CPC)
is considered. You need to set your CPC above a specific threshold to actually
qualify for the bid. If you qualify, the amount you pay is a little above the
next best bid that your competitors made.