Determining Actual CPC

How could one end up paying $100 CPC

[JKelly]

If there are 8 different customers bidding for the same keyword, all different domains and the CTRs and ads in the order below, are the CPCs each will end up paying correct below?

Max CPC -> Actual CPC

100 -> .12
100 -> .11
98 -> .10
85 -> .09
12 -> .08
4 -> .07
.50 -> .06
.25 -> .05

That is does each competitor pay just 1 cent higher than the actual CPC of the ad below them starting at .05? I am trying to figure out in what scenario one could end up paying $100 CPC if one sets their max CPC at $100.

[FromRocky]

Max CPC -> CTR -> Calculation ->Actual CPC

100 -> 43.01%->(100*42.99+0.01)/42.99 ->99.96
100 -> 42.99% ->(98*5+0.01)/42.99 ->11.39
98 -> 5% ->(85*3+0.01)/5 -> 51.01
85 -> 3% ->(12*2+0.01)/3 -> 8.01
12 -> 2% ->(4*2+0.01)/2 -> 4.01
4 -> 2% -> (.5*1+0.01)/2 -> .26
.50 -> 1% ->(.25*1+0.01)/1 ->0.26
.25 -> 1% -> - ->.05

This is one of scenarios but it's unlikely

[JKelly]

Interesting, where did this "Calculation" come from as I have never seen it documented before. It appears to take the previous bidders max CPC times their CTR + 1 cent divided by ones own CTR. I always thought it was as simple as each advertiser pays 1 cent higher than the actual CPC of the advertiser below them with the actual CPC starting at .05 for the last advertiser.

[mike_ppc]

The calculation is correct.

What you thought is not true, not even for Overture. G consideres both MaxCPC and CTR.

[services.google.com...]

[nyet]

Remember the "stealthy" ad CTR is also considered, but G doesn't say to what degree or how.

[JKelly]

Ok, thanks for all the info. :)