There are different kinds of CPC values in your Adwords account. Each of them has a different meaning and purpose. That’s why it’s better for you know, what they are used for and how.
So, as a publisher in Google Adwords system, you have already faced with maximum CPC value. It’s a pretty simple indicator, which shows us the limit of expenses for an ad, set by an advertiser (by ourselves). It shows us the maximum amount of money we are ready to spend for a click. It’s also a useful tool if you’d like to manage your ad campaign wisely and set, for example, the probably maximum value of one possible customer.
But the reality is that you won’t get all of the clicks for the maximum bid. It’s more likely for you to get each visitor for a smaller price, that’s why you’ll save some part of your ad budget for sure. Here is where the actual CPC value comes. It’s used to estimate, what was the actual average price for each customer that visited your website. If you also know your average CTR (click-through-rate of the ad), you can count the real profit, earned with each advertisement block you have.
Contextual advertising specialists advise to control either a maximum CPC on each of your ads, or an average CPC on all of them. These parameters can really show you, whether you gain or lose your money with a certain campaign.