If you are wondering how Google determines the CPC (Cost Per Click) for your PPC campaigns, watch this video now. We all know that Quality Score matters in getting a good Ad Ranking and reduce CPC. Google’s Chief Economist Hal Varian explains how Google determines the price of a CPC when a number if Advertisers are competing for the Ad position. Take a look at the video now; it is only about 10 minutes length.

Even if you are a SEO wizard and get a lot of traffic to your site with on-site and off-site Search Engine Optimization, PPC can not be ignored in the highly competitive market place.Building a quality website with good, fresh content is essential for getting low CPC rates too. Hence if you have built an authoritative web site for your niche and growing it with quality content, then your PPC spending can be dramatically reduced.