If you have run a Google campaign you would notice that there is a discrepancy between your max cost per click and the amount you actually end up paying.

For instance if your maximum cost per click is $.50 but when you look at your stats you may see that you’re actually paying on average $0.35 per click.

This is important because, if you can afford to pay $.50 per click you can actually increase your bid by a few cents to $.65 or $.75 to raise your actual cost per click to the level of your max cost per click.

Now why might you want to do this? Because raising your cost per click improves the ranking of your ad and if you can improve the ranking of your ad by one or two positions you could see better results and profits. This can make all the difference between an ad in the 9th or 10th position on the second page of results and an ad in the 7th or 8th slots receiving much more traffic because it now appears on the first page of results!