Which of the following is true of Google's discounting scheme for advertisers?
A) Advertisers get incremental discounts on their original CPC for every thousand clicks.
B) Advertisers pay the average CPC of all those displayed ads that are ranked below their ad.
C) Advertisers pay only ninety percent of their original CPC rate for every thousand clicks.
D) Advertisers pay one cent more than the minimum needed to retain an ad's position on a page.
E) Advertisers pay the equivalent of the CPC bid by the worst performing ads, taken in a reverse sequence.

Question

Quizplus · Accepted Answer

Google's advertising system is designed so that advertisers pay just enough (one cent more) to outbid the next highest bidder, ensuring they pay the minimum amount necessary to maintain their ad's position. This system is part of Google's AdWords (now Google Ads) auction mechanism, where the actual amount paid is often less than the maximum bid specified by the advertiser, based on the competition and the ad's Quality Score.

Which of the Following Is True of Google's Discounting Scheme