CPT Clarification

Question

pavelgubarev OP

Created Oct ’16

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Hi

There's something not clear in the description of an auction model:

You determine the maximum amount you are willing to pay for a tap on your ad. Using a second price auction, Search Ads calculates the actual cost of a tap based on what your nearest competitor is willing to pay for a tap on their ad, up to your maximum cost-per-tap bid, so you’ll always pay a fair market price.

Ok, I define max CPT.

But what if there is no competitors for the keyword? For example I need to show my app for the people searching for the keyword "Several Species of Small Furry Animals Gathered Together in a Cave and Grooving with a Pict". There are no competitors. Can I pay $0.01 for the tap? Or $0.00001?

What if there are 1000 people searching for the keyword "furry animals" today and my competitors have budget for only 900 of them? Will I be able to buy 100 tap for $0.0001?

So basically the question is what max CPT should I set for extra rare keywords and what will be the actual (not max) CPT?

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Answer 1

soundtrack OP

Oct ’16

Good question. I'd set a low bid of around $0.01 or $0.10 to test it and see what kind of response you get. Since the keyword is so long tail, you might not even get any impressions for the auction to trigger anyway.

> What if there are 1000 people searching for the keyword "furry animals" today and my competitors have budget for only 900 of them? Will I be able to buy 100 tap for $0.0001?

As long as it's just you and advertiser X, then as far as I understand...yes.

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