Keyword Pricing and Analysis

1. What is cost-per-click pricing?

Cost-per-click (CPC) pricing is performance-based pricing in which you only pay when someone clicks on your ad.

2. What is the difference between CPC pricing and CPM (cost per thousand) pricing?

Much online advertising is sold on a CPM basis, which is a set dollar amount per one thousand impressions (each time an ad appears to a Web user). CPC pricing, rather, requires you to pay only when a user clicks on your ad. With CPM pricing you pay the same rate whether your ad gets many clicks or few clicks. With CPC pricing you pay only when a user clicks on your ad.

3. What is a maximum CPC?

Maximum CPC is the maximum price you are willing to pay when a user clicks on your ad. By setting your maximum CPC in your ad, you are setting a ceiling on your keyword bid. As other bidders surpass your CPC, your position in the banner rotation will descend. You will receive an e-mail notification if your rotation position drops so that you can increase your price per click and improve your position if you choose to do so.

4. How do I edit my maximum CPC for an Ad?

To edit your maximum CPC for an ad, go to your Campaign Summary page and click on the name of the Campaign that your ad falls under. Next, click on the ad you want to edit. This will bring you to the Ad Details page; in the max CPC field, enter your new desired CPC. Your max bid can be as high as you want, but the minimum bid per click is $0.10. Click the "Update Ad title/Ad message/CPC" tab located to the top middle of the screen to save changes.

5. What is the minimum CPC bid for an Ad?

The minimum CPC is $0.10. This means that the minimum amount deducted from your budget when someone clicks on your ad is $0.10.

6. What is the difference between the "Current Bid" and the "Max Bid" on the keyword competition screen?

The rate that you actually pay will not necessarily be your maximum CPC bid; the rate you pay will be determined by taking the next highest bid plus $0.01. For example, if your maximum bid is $2.00 per click and the nearest bidder's maximum rate is $1.50 per click, you will ultimately pay $1.51 per click. In order for someone to out bid you they would have to set their maximum bid to $2.01, and then you would pay your maximum bid of $2.00 for the 2nd Ranking. You control how much you are willing to pay for a given keyword/category as well as your total budget for each campaign. You will pay only for clicks, and you will only pay a CPC for those clicks up to the rate that you established with your maximum bid. The overall cost of your program will not exceed the budget you have established.

7. Does the highest bidder get all the clicks?

While all of the clicks do not go to the highest bidder, the higher bidders will have their ads displayed at a higher frequency than lower bidders. Because there are a limited number of available banner rotation slots for each keyword at any given time, the sellers who agree to pay the most for a click earn a higher preference in the rotation and higher frequency with which their banner ads and text links are shown. So while your placement in the rotation affects the frequency your ad is viewed and can increase the chances of clicks, this is also influenced by the look and feel of the banner.

8. How do you bid on a Keyword?

As you choose the keywords you want to use for your Ad Campaign, you will be prompted to enter a maximum cost per click you are willing to spend for your Ad. The maximum CPC is not necessarily how much you will pay for your keywords. Additionally, adMarketplace Keywords will increase your maximum bid to $0.01 above the current highest bidding competitor for each of your keywords chosen. Thus, you will only pay a penny above your next competitor's highest bid, which puts each of your keywords in the top bidding position. You may edit your max cost per bid for each keyword to customize the cost per bid for each of your keywords. Keep in mind that other competitors for your keywords may outbid you by adding $0.01 above your maximum bid. As competitors fall out of competition, due to their campaign ending, your current bid price will also be reduced down to $0.01 above the next highest competitor. To understand more about the bidding logic, please see the section on 'What is Current Bid and Max Bid'.

9. How do I see competitive rates for my keywords?

Once you have entered your keywords from the Create Ad screen, press the Competition button to see how your ad compares with the top bidders for the same keyword(s). You can see the maximum price the top bidders are willing to pay along with their banners. adMarketplace Keywords provides a level playing field by letting you stay on top of your competition, ensuring that your bidding strategies and banners are competitive.

10. Can I have my bid automatically increase when there is a competing bid?

Once your ad has reached its maximum bid it will no longer automatically increase, you will receive an email that you have been outbid and you can go into the system and increase your maximum CPC.