Types of Cost Per Click (CPC).

In this article,Types of Cost Per Click (CPC) is explained in detail with practical images.
Depending on our bidding strategies we have different types of CPC's.
Maximum CPC.
The maximum amount an advertiser is willing to pay.
Average CPC.
The amount charged by google to our account on average.
Estimated First page bid.
The amount you have to bid to be on the first page.
Estimated top position bid.
The amount you have to pay to be in the top four positions.
Estimated first position bid.
The amount you have to pay to be in the first position. (From topic Types of Cost Per Click (CPC))
Actual CPC.
It is an actual amount changed for every single click in Adwords.
The actual amount is always less than our maximum CPC
Actual CPC=[(AdRank to Beat/your quality score)+0.5rs].
Here AdRank to Beat value means Ad rank value of the competitor.
Ex.
Advertiser
Max CPC
Quality Score
Ad Rank
Position
Actual CPC
A
10
10
100
1st
(60/10)+0.5=65
B
15
04
60
2nd
(40/4)+0.5=10.5
C
20
02
40
3rd
Min bid (depends on past Histroy)

If Quality Score is 7-10 there will be a decrease in price.
If Quality Score is 6 it is a Benchmark.
If Quality Score is 1-5 there will be high in price.

Advertiser
Max CPC
Quality Score
Ad Rank
Position
Actual CPC
A
10
06
60
3rd

Min bid
B
15
09
135
1st
(120/9)+0.5=13.8
C
20
06
120
2nd
(60/6)+0.5=10.5
Note.
If an advertiser Maximum CPC is Rs20/- and then nearest competitor bid is 10/- assuming that quality score is same the A advertiser has to pay just 50 paisa above than B advertiser. (From topic Types of Cost Per Click (CPC))
Ex.
A=500
B=40 //competitor+0.5 paisa--- A's bid in Rs.

A=10$
B=5$  //competitor+0.01$---A's bid in $.

Bidding Strategies.
How to go to Bid Strategy
Goto Left Menu ---select shared library---Bid strategies---target search page location.
Bid Strategy Location-Javaform
Target Search Page Location.
Adjust bids to get your ads to the top of the page or the first page of search results.
Target Outranking share.
Beat competitor by submitting competitor domain and including the percentage of targeting keywords in order to bid higher. (From topic Types of Cost Per Click (CPC))


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