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How is cost per click calculated?

Calculation rules for the cost of entering guaranteed and premium placement

The price of every position depends on competition with other advertisers over the specific keyword. This is why the position price varies for different keywords.

Listed below are the factors that affect the position price:

  • indicators of your ad for the specific keyword: CTR and quality coefficient;

  • indicators of all the competing ads (including Yandex.Market product offers http://market.yandex.ru) for the same keyword: CTR, quality coefficient, and bids

When calculating CTR, impressions and clicks of all the ads in the group are taken into account for a particular keyword within the last 28 days. In the absence of sufficient statistical data, we use forecasting.

For guaranteed impressions and premium placement, CTR is calculated separately: when calculating the price for guaranteed placement and 1st position placement, we take into account CTR in the guaranteed impressions block; when calculating the price for the premium placement and for the 1st and 2nd position in the premium placement block, we take into account the CTR in the premium placement block. The Yandex.Direct interface shows the overall CTR.

The Quality Coefficient is a multi-factor parameter accounting for the ad relevance to the query, keyword and ad statistics, the ad relevance to the landing website page, etc.

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.

The price calculation algorithm depends on the campaign type:

  • 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.

Attention! 

The availability of the premium placement and guaranteed impressions blocks does not depend on whether there are any competing ads. In some cases, these blocks may not contain any ads.

Please read the ad display rules. These rules contain detailed information on the ad display terms and conditions.

After my campaign started, the cost of guaranteed or premium placement started going up

This means that your ad has a very low CTR. To lower the cost of entry, you can improve the text and refine your ad's impression criteria. For more on this, please refer to the How do I make my ad more efficient? section

Effect of geotargeting and time targeting

Keywords compete only in regions where such keywords are displayed.

If time targeting prevents an ad from being displayed, the bids on the ad's keywords are still taken into account when calculating the price of entry to guaranteed impressions, premium placement, and first position impressions. When viewing and editing your CPC, you can choose not to factor in competitor ads that are currently suspended due to time targeting. Please bear in mind that the CPC for a certain position may vary considerably during the day. This may lead to your ad not being displayed in the desired position.

Effect of competitors' ads

All competitors' ads for a given keyword are taken into account by Yandex.Direct when calculating the cost of each position.

For text & image ads, you may disable the option that takes into account competitors’ ads that are automatically discontinued by time targeting while you are viewing and/or editing your CPCs. Please bear in mind that the CPC for a certain position may vary considerably during the day. This may lead to your ad not being displayed in the desired position.

For more details on how the competitors' bids are taken into account, please refer to the How the Yandex.Direct auction works section.

Search CPC

The Search CPC field on the bid setting page shows the cost that will be charged at that present moment for a click on an ad on the results page for search query that perfectly corresponds to a keyword (not accounting for stop-words). The Yandex Search price is displayed only for the text & image ads.

Every impression will make the price automatically decrease to ensure your ad the best possible position without any additional fees and considering the specific query, geographic region and time targeting.

If the group is composed of several ads, its interface will display a generalized Yandex Search price for all of its active ads to ensure the best position for most ads with the best CTR rates.

In this case, the effective Yandex Search price may be as follows:

  • Lower than the guaranteed placement entry cost: the ad will be alternated with other advertisers' ads in positions between 5th and 9th.

  • Lower than first place: the ad will be shown in guaranteed placement positions between 2nd and 4th.

  • Equal to the 1st position price: the ad is displayed in the first position of the guaranteed impressions block.

  • Lower than the premium placement entry cost: the ad will be shown in first place, and in some of the geotargeting regions it will be shown in premium placement positions.

  • Below the 2nd position of the premium placement block price: the ad is displayed in the 3rd position of the premium placement block. However, in some regions, the ad may be displayed in the 2nd position.

  • Below the 1st position of the premium placement block price: the ad is displayed in the 2nd or 3rd position of the premium placement block. However, in some regions, the ad may be displayed in the 1st position.

The price debited from the advertiser’s account will change dynamically (never exceeding the maximum bid) each time the ad is displayed. Such changes depend on the number of competitors, their bids, CTR, geotargeting and time targeting of each specific user query.

Why is priority displayed instead of CPC?

It is possible you have enabled an automatic bid management strategy (such as Weekly budget). This strategy's job is to automatically keep an ad campaign running based on a set budget. Thus, it lets you set the keyword priorities and general limits, ie the maximum CPC for every keyword, but doesn't allow you to manage the precise bid for every keyword,

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