Manuel is a seller running a Sponsored Brands campaign for his smartwatch. His CPC bid is $0.85. He is the highest bidder in the auction, with the second highest bid being $0.78. Which of the following is Manuel likely to pay in this instance?
- $0.86
- $0.77
- $0.85
- $0.79
Explanation:
Sponsored ads use an auction-based cost-per-click (CPC) inventory-buying mode. The winner of the auction has to pay an amount slightly higher than the second highest CPC bid if their ad is clicked.
So, in order to win the auction, Manuel has to pay an amount slightly higher than the second highest bid ($0.78) which is around $0.79.