Estimate Pay Per Click Ad Cost

Potential advertisers very concern about Pay Per Click cost, just take a look how Google Adwords cost of per click is calculated, will get basic idea about the cost.

First, potential advertisers need understand several Google Addwords terms.

Maximum CPC bid
A bid that advertiser set to determine the highest amount that they are willing to pay for a click on their ad.

If someone clicks ad, that click won’t cost advertiser more than the maximum cost-per-click bid (or “max CPC”) that advertiser set. The actual amount that advertiser pay is called the Actual CPC.

Average cost-per-click (Avg. CPC)
The average amount that advertiser has been charged for a click on their ad. Average CPC is calculated by dividing the total cost of advertiser’s clicks by the total number of clicks. Avg. CPC is based on Actual CPC.

Calculate Average cost-per-click (Avg. CP

From above Table
Regarding the keyword “pay per click”, if an advertiser bids for Max CPC $1.65, then get 63.65 click a day, the Avg CPC is $1.00, but if the advertiser wants to keep Avg CPC to be $0.59, then may change Max CPC to $0.8, but will only receive 37.47 clicks a day. same as “pay per click”, you can compare Max CPC and Avg CPC of other two keywords “digital camera” and “digital camera for sale”, so Pay Per Click ads cost is decided by advertisers based on how many clicks want to receive and how much want to spend.

Google uses a tool called “Traffic Estimator” to estimate Avg.CPC, possible clicks etc.

Minimum Bid
There is no accurate number, according to Google, since August of 2005, the minimum bid has been quality based. To put it simply, the higher the Quality Score of a keyword, the lower one’s minimum bid will be for that keyword.

Minimum Bid for Ads with Placements
Placements affect only the Display Network, so the standard Display Network pricing rules apply.
US$0.25, or the local currency equivalent, is the lowest bid that advertisers can set for cost-per-thousand-impressions (CPM) campaign.
US$0.01, or the local currency equivalent, is the lowest bid that advertisers can set for a cost-per-click (CPC) campaign.

It is hard to give a straightforward answer about cost of per click, usually 20 cents to $1.30, depends on clickthrough rate(CTR), quality score, MAX CPC, bidding types, specific industry etc.

Google Adwords Quality Score
Goolge use Quality Score to determine advertising cost. Quality Score is an estimate of how relevant your ads, keywords, and landing page are to a person seeing your ad. Having a high Quality Score means that Google’s systems think your ad, keyword, and landing page are all relevant and useful to someone looking at your ad. Having a low Quality Score, on the other hand, means that your ads, keywords, and landing page probably aren’t as relevant and useful to someone looking at your ad. Every time someone does a search that triggers your ad, Google calculates a Quality Score.

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