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Understanding Google Adwords Cost Per Click (CPC) Made Easy !!

What is Cost Per Click (CPC)?

Cost per click can be defined as a bid which is placed by you for a key word or for a full campaign. The cost per click can be made different for each keyword.

The amount you bid does not mean that you will get charged that much amount as Google charges you just 1 cent higher than nearest bidder. In PPC model of Overture; you get charged as per your bid. However in case of Google cost benefit is passed to the bidder which reduces his cost per campaign.

For example, if you have a max CPC of $0.40 set for a keyword, you'll only have to pay the full amount if someone else bids $0.39. If that person decides to lower his bid to $0.20, you'll only pay $0.21. This is because Google's bid discounter only charges you one cent more than the next highest bidder, no matter what your max CPC is. Theoretically, then, you could bid $10 or even $100 and still only pay $0.31 for a click. This is a honest method of doing business.

So if you want to take the business to next level, you can not ignore the Google Adwords campaign which is a transparent system of executing advertisements.

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