How is the cost per click (CPC) determined?

The cost per click (CPC) is determined by a number of factors outlined below:

• Number of competitors bidding for a keyword
• The position of the advert in the search result (from 1 to 11)
• The quality of the advert content and the relevance to the keyword
• The quality of the website that users are directed to
• The relevance of the keyword to the website that users are directed to
• The click through rate (CTR) of the advert which defines how may users click on the advert compared to the number of times the advert is displayed

In most cases the top position in the paid results is the most expensive; however other factors as listed above can mean that the highest bidder will not necessarily take the top position.