Search Ads Update: Cost Per Click Pricing

Hi everyone,

As many of you are aware, the way we’re charging for Search Ads is changing.

Starting today, you’ll be charged on a cost per click (CPC) basis instead of cost per thousand impressions (CPM) basis. With this new structure you’ll only be charged when a potential buyer clicks on your ad, as opposed to each time the ad is displayed (an “impression”) in search results.

To understand the benefits of this new structure, imagine you own a brick and mortar store (as many of you do!). Outside your store you pay someone to hand out flyers, and you pay this person for each flyer they distribute. This is like cost per impression pricing, since you’re paying every time your ad is viewed.

Now, imagine that instead of paying every time a flyer is viewed, you pay every time a flyer gets a customer into your store. This is like CPC pricing. It’s a simpler, more direct way to understand the success of your ads and how you are being charged, since the whole goal of the ad is to get customers into the store (i.e. click on your ad).

Please note that if you had a weekly campaign running prior to April 2nd, you'll be charged for impressions until the following pay period. However, you can start and stop your campaign in order to immediately switch over to the new CPC pricing model.

It's also worth mentioning that your budgets will remain in place and, as always, we’ll never exceed that budget. However, now is a great time to review your budget, making sure that it’s right for you and your business.

The list of available keywords will be updated to reflect CPC pricing, and each keyword will be based on an average price according to the demand of that keyword, as it was under CPM pricing [1].

In addition, your Search Ads stats are now conveniently available via the Search Ads dashboard by clicking on the “View Stats” button.

If you have any questions, go ahead and ask in this discussion thread:

As always, thanks for reading.

Bowen on behalf of the Ads team

[1] View the list of available keywords here:

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