In Google Ads, you can choose to bid for clicks (CPC), impressions (CPM), or conversions (CPA).
If you choose to bid for clicks, you’ll pay each time someone clicks on your ad. The amount you pay is determined by your maximum bid and the quality score of your ad. The quality score is a measure of the relevance and quality of your ad, landing page, and keywords, and it can affect how much you pay for each click.
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If you choose to bid for impressions, you’ll pay each time your ad is displayed on the Google Search or Display Network. The amount you pay is determined by your maximum bid and the competition for the ad space.
If you choose to bid for conversions, you’ll pay each time someone converts on your website after clicking on your ad. The amount you pay is determined by your maximum bid and the likelihood that someone will convert after clicking on your ad.
In all cases, Google Ads uses an auction system to determine which ads are displayed and at what price. The highest bidder doesn’t always win; the ad with the highest bid and the highest quality score is more likely to be displayed.
It’s important to carefully set your bids and budget to ensure that you’re getting the best return on your investment. You can use the Google Ads dashboard to monitor the performance of your campaigns and make adjustments as needed.