When someone clicks your ad, the actual amount you’re charged will be:
- The minimum requirement to maintain ad position or 50% of the maximum CPC, whichever is higher
- The minimum required to maintain ad position, but not less than 50% of the maximum CPC, whichever is higher.
- The minimum required to maintain ad position, but no more than 120% of the maximum cost-per-click bid, whichever is higher.
- The minimum needed to hold your ad position, under the maximum cost-per-click (max. CPC) limit
The correct answer is:
- The minimum needed to hold your ad position, under the maximum cost-per-click (max. CPC) limit
Read More: https://support.google.com/google-ads/answer/6297
Explanation:
The actual amount you have to pay is to keep your ad position at the highest ad position under the maximum cost-per-click (max. CPC) limit when someone clicks your ad.
The cost-per-click is the actual amount you pay for each click.
You are charged less, sometimes, even more, less than your maximum cost per click bid, this is the most you will be charged for a click.
The cost-per-click charged to you is usually less than the maximum amount. This is because, with the google ads auction, you only pay minimal to clear the Ad Rank thresholds and beat the Ad rank of the other advertiser competing on the same bid below you.
When there are no competitors other than you, you only pay the reserve price.
You have to understand that your actual CPC can increase your max.
The CPC is determined on the auction time, ad quality, and this includes clickthrough rate, ad relevance, and landing page experience, CPC bid and the Ad Rand thresholds, and the competitiveness of an auction.