Managing your CPC
To set a different CPC, follow the link from the campaign name in My campaigns. You will see a list of ad groups in this campaign, and a list of all targeting criteria that are currently active: keywords, retargeting lists, and mobile app interests. The forecasted CPC is calculated for the whole ad group. It allows most of the ads to enter the specified position.
Basic statistics are shown next to each targeting criteria: the number of impressions and clicks, and the CTR. For keywords, you will also see the CPC that will allow the majority of ads from your group to be served in 1st, 2nd, and other positions in the premium placement block, as well as in the 1st and subsequent positions in the guaranteed placement block. The CPC forecast doesn't account for certain factors such as bid adjustments or competing ads from other regions with extended geotargeting. This means that sometimes your ad might not end up in the position you want, even if your bid is high enough.
The entry price for guaranteed placement and premium placement on the first search results page is determined by the following:
Your ad's indicators for that keyword: the quality coefficient and CTR forecast for that specific impression.
The indicators of competing ads for that same keyword: their bids, quality coefficients, and CTR forecast for that specific impression.
The threshold to enter premium placement and guaranteed impressions does not depend on whether or not you have competitors.
For target audiences and user interests, the CPC is shown for various levels of audience coverage in ad networks.
You can set the maximum CPC to the right of each targeting criteria. You can also set the overall maximum CPC for a certain type of targeting criteria (keywords, retargeting lists, or mobile app interests) in this ad group.
After setting the cost per click that you are willing to pay, click the Save bids button at the bottom of the page.
Position prices and click prices depend on the competition between advertisers for a given keyword. Factors such as the existence of competing ads, their bids, the CTR forecast, and quality coefficients all impact position price.
For Text & Image ads, the position prices and click prices are calculated according to search queries that match the keyword (without stop words). For example, if you set a First Position bid for the query buy matches, then for the query buy fireplace matches, the ad may not be included in Guaranteed Placement.
For ads for mobile apps, position prices and click prices are calculated according to all search queries including the keyword (without stop words). For example, when calculating prices for the phrase buy matches the comptetition between the phrases buy matches, buy fireplace matches, buy waterproof matches, etc. is taken into account.
Position prices and click prices are calculated for all active ads of a group. If there are no active ads in a group, then the prices are calculated for all ads in the group.
Position prices change dynamically, and if the price goes up, an ad may be moved to a lower position.