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Every time a user conducts a search on Google, Google Ads runs an auction in real time to determine which search ads are displayed on the search results page as well as the ad's position. [33] The cost of a Google Ads campaign therefore depends on a variety of factors, including the maximum amount an advertiser is willing to pay-per-click of ...
Pay-per-click is usually associated with first-tier search engines (such as Google Ads, Amazon Advertising, and Microsoft Advertising). With search engines, advertisers typically bid on keyword phrases relevant to their target market and pay when ads (text-based search ads or shopping ads that are a combination of images and text) are clicked.
The advertiser pays each time someone clicks on their text or display ad. When advertising in the Google platform, CPC bidding means that an advertiser pays for each click of an ad placed and that, in ad campaign, he can set a price cap as a maximum CPC bid. [3] Here, the CPC pricing is also sometimes referred to as PPC.
Google Ads allows advertisers to display their advertisements in the Google content network, through a cost-per-click scheme. [155] The sister service, Google AdSense, allows website owners to display these advertisements on their website and earn money every time ads are clicked. [156]
Using both AdSense and Google Ads may cause a website to pay Google a commission when the website advertises itself. [37] In some cases, AdSense displays inappropriate or offensive ads. For example, in a news story about a terrorist attack in India, an advert was generated for a (presumably non-existent) educational qualification in terrorism. [38]
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Cost per impression, along with pay-per-click (PPC) and cost per order, is used to assess the cost-effectiveness and profitability of online advertising. [1] Cost per impression is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership, or readership.
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