For more reference and details Please review www.mobida2.com/pay per click.php">Google Adwords Pricing Model , Adwords Learning Centre, Pay Per Click Optimization
Google Adwords, Quality base pricing system will ensure that you will never be billed more than the bid amount you placed for the keyword or content bid amount. In Google Adwords, CPC for the maximum position is directly related with Quality SCORE and CPC bid. To know more about the mechanism you need to know more about Ad Rank and The Quality SCORE.
Ad Rank: it is the factor that determines the ad position in search and content pages. The high value ad ranks are positioned on top and so on. Google Calculates the ad rank =CPC BID * QUALITY SCORE
Quality Score is always a confusing factor for majority of the advertisers. Basically Quality Score is the main factor that rules your Pay per Click Ad Campaign success. You need to remember that “QUALITY SCORE of a keyword” – you cannot build in just by selecting or inserting a keyword in an Ad Group.
Quality Score is coupled with the history of your Adwords account performance, the performance of your keyword, the keyword CTR in the Ad Group and the CTR Value of the keyword in your Adwords Account, the relevancy of your keyword with the displayed ad text, the relevancy of the keyword and the matched ad to search query, the Adwords Account performance in the geographical region where your ad will be shown and many more other relevance factors.
In other words, you need to build the Quality Score for your best keywords and it is just like building reliability in the market place for your keywords and Adwords. The concept here I always tried to explain that Google Adwords is not only just to run the Pay per Click Campaigns, it is to build your reliability and the Quality Score in turn ensure that your business model is clean and straight to serve the end user to its maximum satisfaction, resulting in increased loyalty to Google Search.
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