Web site publishers can contract with Google to place ads on their site. The ads can contain a combination of text, images, or videos. Google decides what type of ads to run on a given site, based on the amount of traffic that it receives, the kind of content or subject matter, and the number of advertisers interested in the material. The publisher is paid based on the number of times viewers click the ad; the amount paid per click is that ad’s CPC. Advertisers bid how much they are willing to pay for each click, and Google uses complex algorithms to match publishers and advertisers. Sites with the largest number of unique visitors and that incorporate the most valuable keywords receive the highest CPC. The auction for ads is dynamic and continuous, so CPC changes constantly.
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