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How to caculate Adwords cost by myself?
Yangtze

10+ Year Member



 
Msg#: 3047306 posted 5:52 pm on Aug 15, 2006 (gmt 0)

I am not sure how Google caculate the cost.

For example, I have an ad group, bid is $1.20USD per click, recived 13 clicks, impression 1142, click rate 1.13%. Then it shows "average cost per click" $0.72. (avarage ranking 3.5)

Could anyone here let me know how it comes to $0.72?

 

LifeinAsia

WebmasterWorld Administrator lifeinasia us a WebmasterWorld Top Contributor of All Time 5+ Year Member



 
Msg#: 3047306 posted 5:57 pm on Aug 15, 2006 (gmt 0)

Google takes the total cost for all the clicks and divides by the number of clicks to get the average cost per click. Simple math.

bostonseo



 
Msg#: 3047306 posted 6:01 pm on Aug 15, 2006 (gmt 0)

Yes you'll never see an actual breakdown of the clicks - always just an average.

AdWordsAdvisor

WebmasterWorld Senior Member adwordsadvisor us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3047306 posted 10:46 pm on Aug 15, 2006 (gmt 0)

Google takes the total cost for all the clicks and divides by the number of clicks to get the average cost per click. Simple math.

Yes you'll never see an actual breakdown of the clicks - always just an average.

Quite correct. And just to add a bit more detail, each click is quite likely to cost a different amount - which is dependent on the competitive landscape at the moment the search takes place.

The actual cost per click will always be less than (or equal to) the Maximum CPC set by the advertiser for the Ad Group (or per individual keyword if the advertiser has set things up that way).

AWA

bostonseo



 
Msg#: 3047306 posted 11:52 pm on Aug 15, 2006 (gmt 0)

Man it would be sweet to see the actual click charges....just once. What other product/service do you buy where you never actually get the actual (not average) price?

AdWordsAdvisor

WebmasterWorld Senior Member adwordsadvisor us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3047306 posted 12:20 am on Aug 16, 2006 (gmt 0)

Price per grape or green bean? :)

AWA

bostonseo



 
Msg#: 3047306 posted 12:44 am on Aug 16, 2006 (gmt 0)

Not if I buy 1 grape 3 separate times on the same day AWA. Nice try though.

Yangtze

10+ Year Member



 
Msg#: 3047306 posted 7:52 am on Aug 16, 2006 (gmt 0)

Does the "cost per click" have anything to do with "click through rate"?

bostonseo



 
Msg#: 3047306 posted 1:04 pm on Aug 16, 2006 (gmt 0)

"Does the "cost per click" have anything to do with "click through rate"? "

Yes with a caveat. CPC price used to be much more in line with actual click thru rates. Once Google added the quality score factor of the CPC algorithm, click thru rate has become (in the majority of the cases) less of factor in the how the price is determined.

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