What is the cost model in Google Ads where advertisers pay only when someone clicks on their ad?

The cost model in Google Ads where advertisers pay only when someone clicks on their ad is known as Cost Per Click (CPC). This model is popular among advertisers because it allows them to pay solely for actual engagement, rather than just for ad impressions.

In this model, advertisers set a maximum bid they are willing to pay for each click on their ads. When a user clicks on the ad, the advertiser is charged only that amount, or possibly less, depending on the competition from other advertisers and the effectiveness of their ad. This can help optimize budgets and improve return on investment (ROI) since payments are directly tied to interactions with the ads.

CPC can be further divided into two types: manual CPC, where advertisers set their bids, and automated CPC, where Google optimizes the bids to maximize clicks within the given budget.