So CPC is say "x", there are 6 clicks and earnings are 6x. Then later in the day CPC suddenly changes to 1/2x, clicks increase to 8, but earnings are now only 8 x (1/2x) = 4x. If CPC changes, shouldn't pre-existing earnings remain the same?
You always ask the best questions. I would have thought so eugbug. Then I see a different trend. I am just wondering if the major advertisers pulling out from google are going to make something crazy happen. I don't know if they have pulled out entirely. I guess my question is, are UK visitors valued differently post March?
Google often invalidates clicks if they come from a suspicious source. In fact, it has been a major problem for the company.
So you could lose 2 clicks with an average CPC of $1 and earnings of $2, then in the same day gain 1 click with a CPC of $3 and end up with earnings of $3. Or vice versa.
If you have an AdSense account, go to Settings / Payments / View Transactions and Documents to see how much Google takes back each month. It's usually less than 1% of the total for me, but other people have been known to lose much more.
I believe that CPC is a calculated figure, found by dividing the earnings by the clicks and adjusting for 100.
If two clicks bring 1.00 each and 5 more bring .02, that's 2.10 for 5 clicks, or .42 (42.00 per 100).
The result is that CPC is an average, not applicable to single clicks.
Ok, well that makes a lot of sense. So is the average just a simple moving average for the day, with the sample beginning at midnight?
Most adverts are now contextualised to match what the reader has been searching for: unless Google tracking is blocked. Hence, the range of earnings per click can vary considerably. What matters most, is how much the advertiser has paid for the 'clicked' advert to be shown.
As regards, 'how wide is the window:' it is vast. Anyone using Google Adwords will confirm that bidding on highly competitive keywords, can range from cents to hundreds, if not thousands of dollars.
Hope this helps.
EDIT: Just noticed your revised wording. Adsense is reset on a daily basis. So you always begin with 0 clicks and $0 earnings.
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