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Google Ads is a “pay-per-click” advertising program, meaning you only pay for the clicks your ads receive.
For Google Search and Shopping ads, CPC or Cost Per Click is charged based on every click your ad gets. The price you pay for each click depends on the bidding strategy you choose. You can set a maximum price you’re willing to pay for a click, or you can let Google use one of its many Artificial Intelligence options for selecting a per click bid for you. Each click will have a different price as Google uses an auction system for selecting which ads to display.
Display Ads can be charged as CPC, CPM or Cost Per Conversion. CPM (Cost Per Thousand) means that you’re charged based on every 1000 impressions of your ad. Cost Per Conversion means you’re only charged when Google registers a conversion. To be eligable for this option you need to have 100 or more conversions per month.
When you set up Google Ads you need to enter a credit card for payment. You will be automatically charged when your ad spend meets your billing threshold, or the first day of the month, whichever comes first.