"If you have only 4 bidders each get a click (using those ctr's as averages to simplify)
A sets maximum Bid at $1.00 CTR 3%
B sets his maximum Bid at $0.70 CTR 2%
C sets his maximum Bid at $0.50 CTR 1%
D last bidder maximum Bid at $0.10 CTR 1%
What would A, B, C and D have to pay?
What will the positions for each be?
In Advertiser 123's example, rank number and position look like this:
A sets maximum Bid at $1.00 CTR 3% - Rank number = 3, and Position = 1
B sets his maximum Bid at $0.70 CTR 2% - Rank number = 1.4, and Position = 2
C sets his maximum Bid at $0.50 CTR 1% - Rank number = 0.5, and Position = 3
D last bidder maximum Bid at $0.10 CTR 1% - Rank number = 0.1, and Position = 4
In terms of each advertiser's CPC in the above example, it looks like this:
A sets maximum Bid at $1.00 CTR 3% - CPC paid = 47 cents
B sets his maximum Bid at $0.70 CTR 2% - CPC paid = 26 cents
C sets his maximum Bid at $0.50 CTR 1% - CPC paid = 11 cents
D last bidder maximum Bid at $0.10 CTR 1% - CPC paid = 05 cents (minimum CPC) "
I thought in this example you pay the folowing:
A sets maximum Bid at $1.00 CPC paid = $0.13
B sets his maximum Bid at $0.70 CPC paid = $0.12
C sets his maximum Bid at $0.50 CPC paid = $0.11
D last bidder maximum Bid at $0.10 CPC paid = $0.10
Id this is not thrue and the counting in the example of the other psot is right.
How is this counted? In other worth, why is number one paying 47 cents?
CPC A = (ranknumber B + 0.01)/CTR A
And the formula is a lot more complicated tehn:
CPC A = (ranknumber B + 0.01)/CTR A
And they dont want people to encourige to higher there max CPC bid but to get better CTR.
So whats true?
