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How do auctions determine CPC?
 

How do auctions determine CPC?

Several general principles:

  • Bid size influences not whether an ad will be shown, but where and how often. Let’s imagine four advertisers bid on the keyword “buy bathroom floor tiles,” for 30, 25, 20, and 17 rubles respectively. Each of their ads is displayed, not just that of the winner of the auction. Higher bids simply increase the chances of an ad appearing on more noticeable sites.
  • The winner of these auctions is determined by both the bid and quality of the ad: the more relevant and interesting the ad, the smaller the winning bid. If users like your ads, you can use the same-sized budget to purchase more goal conversions.
  • There’s enough traffic for everyone. The Yandex Advertising Network features more than 20,000 partner sites. Larger companies can set higher bids and thereby occupy top ad positions, but there are always suitable places and audiences for your ads.

Average click prices vary based on content and user search queries.

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