Pay per Click on Google

Actual cost per click (CPC)

Your actual cost per click (actual CPC) is the final amount that you're charged for a click. You're often charged less – sometimes much less – than your maximum cost-per-click (max. CPC) bid, which is the most you'll typically be charged for a click.

Actual CPC is often less than max. CPC because, with the AdWords auction, the most that you'll pay is what's minimally required to hold your ad position and any ad formats that are shown with your ad, such as sitelinks.

How this works

We combine the components of Quality Score (expected click-through rate, ad relevance and landing page experience), the max. CPC bid and the expected impact of extensions and other ad formats to determine Ad Rank . When estimating the expected impact of extensions and ad formats, we consider such factors as the relevance, expected click-through rates and the prominence of the extensions or formats on the search results page. Each advertiser’s Ad Rank is then used to determine where the ad appears, and what types of extensions and other ad formats will show with the ad (or whether the ad or ad format will appear at all).

For ads on the Search Network, the minimum Ad Rank required for ads above search results is generally greater than the minimum Ad Rank required for ads beside search results. As a result, the actual CPC when you appear above search results could be higher than the actual CPC if you appear beside search results, even if no other advertisers are immediately below you. Although you may pay more per click, top ads usually have higher click-through rates and may allow you to show certain ad extensions and other features that are only available only in top ad positions. As always, you’re never charged more than your max. CPC. bid.

Resources
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Pay Per Click Marketing Guide: Steps to Successful ROI Driven PPC Campaigns: Pay Per Click Marketing Made Easy: Tips for Better ROI Focussed PPC Advertising (Search Engine Optimization Books Book 1)
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