Mar 10, 2020

Understanding CPC, impressions and bidding.

Hi. I'm new to Adwords and I want to see if these assumptions about a campaign in Google's Search are correct:
  1. Bidding: Maximize Clicks means CPC. I only pay when the ad is clicked on.
  2. If my ad is shown on when searching, that's an impression.
  3. If my max CPC is 1€, my competitor's is 0.50€ and we're both competing for the word "car", when a user searches "car" it will show my ad and it'll count as an impression. I won't get charged until the user clicks.
  4. If a given keyword has low clicks and high impressions, it means my bid is winning often.
  5. If a given keyword has low clicks and low impressions it could mean:
    1. The keyword is not searched enough or,
    2. my bid is not winning often.


Thanks!
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Last edited Mar 10, 2020
All Replies (4)
Mar 10, 2020
Are these  exam questions? 
We do not provide help on training / exam questions 
Mar 10, 2020
Hi

Seems like you learned the basics of Google Ads from a real wrong guide. Forget whatever you learned and get started from here https://support.google.com/google-ads/answer/6146252?hl=en 

If you are looking for exam type question answers try this https://support.google.com/google-ads/answer/6319?hl=en
Mar 10, 2020
Thanks to one of the links posted, this is what I've been able to find:
  1. I seem to be right.
    1. "You can get good value with this bidding method because you pay only when a viewer is interested enough to click your ad and learn more."
    2. "If 100 people view your ad and three click it, you pay for the 3 clicks, not for the other 97 views."
    3. "If you think it's worth US$.25 to have someone visit your website, you can set US$0.25 as your max. CPC. You'll pay a maximum of US$0.25 when a person reads your ad and clicks it, and you pay nothing if they don't click."
  2. I seem to be right.
    1. "An impression is counted each time your ad is shown on a search result page or other site on the Google Network."
    2. "Each time your ad appears on Google or the Google Network, it's counted as one impression."
  3. I was partially right. Assuming my ad and my competitor's are relevant to the search, whether I win in the auction depends on more than just the max. CPC.
  4. I was partially right. Related to #3, high impressions means my ad wins but not simply because of my max. CPC.
  5. Still haven't found a clear answer to this.

Overall, I'm not 100% confident about my findings. I'd like someone to confirm or deny and possibly explain to me why these are wrong.
Mar 10, 2020
Hi John,

You remind me one of my long time client who comes up with questions like these. 

You are doing good with your learnings. Keep learning more, there are plenty of resources available..

Good luck
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