The ad auction and your cost
The ad auction and your cost
|Things you should know
- With QC Cốc Cốc, you pay for each click (CPC – cost per click) – you only have to pay for each time a user clicks on your ad.
- Bid price: the maximum amount you are willing to pay for a click on your ad. You set your bid for a keyword or category during the ad creation process.
- Clickthrough rate (CTR): How often people click on your ad when they see it. Ex: your ad display 10 times and get 1 clicks, your CTR is 1/10 = 0.1 = 10%.
- Average CPC: The average price you pay for a single click (you can see your average click price in the “Average CPC” column of your stats page).
Why do we use an auction system?
We want all advertisers to be able to advertise with the lowest cost possible, while also ensuring that our users see relevant ads that they are interested in. To help accomplish this goal, we use the ad auction to determine two key things:
- Decide which ads to display: We want to display only ads our users find relevant.
- Calculate the click price for advertisers: Advertisers only pay the minimum bid needed to win their ad placement.
How does the auction determine which ads to show?
Whenever a user enters a search query or opens a new tab, all ads will go through an auctionto determine which ads will be displayed and in what order. The auction system compares your ad to other ads based on two factors:
- Bid price: The maximum bid you set when choosing your keywords.
- Ad quality: The perceived relevance and usefulness of your ad to your customers. Ad quality is evaluated using CTR (click through rate).
Based on the combination of these two factors, the system will choose which ads to display.
- For search ads, the ad with the best combination score will be displayed at the first position. Each subsequent position will display the next highest ranking ad.
- With banner ads (only one position): the ad with the best combination will be shown.
- For icon ads, the ad with the best combination score will display in the position which receives the highest average CTR. This position might not always be the first position on the page because of how users behave. Each subsequent position will display the next highest ranking ad.
Why do you usually pay lower than your max bid?
After the auction process, your actual click price will be calculated. The actual click price is normally lower than your max bid and depends on:
- Your competitors’ bid prices: the higher they bid, the more you will have to pay for a click.
- Your ad’s CTR: the better your ad’s CTR compares to the CTR of your competitors’ ads, the lower your actual price is.
The most important thing to remember is that even if your competition bids more than you, you can still win a higher position — at a lower price — with highly relevant keywords and ads.
Please note: Since the auction process is repeated for every search / new tab on Cốc Cốc, auction results may differ depending on the exact competition at that moment. You may see some fluctuation in your ad’s position, click price, or whether or not your ad is displayed.
How we calculate your total cost
When your ads are displayed and receive clicks, your total cost will be:
Average CPC x Number of clicks
- For example, if your average CPC is 800 VND, and you receive 100 clicks, your total cost for that time period will be 80.000 VND. Simple!
- Your actual average CPC is usually lower than your max bid thanks to the auction process detailed above.
If you have any questions or problems with your advertising cost, please contact us via:
Hotline: (024) 38 838 838
Email: email@example.com; firstname.lastname@example.org
Skype: coccoc_qc or Yahoo: coccoc_qc