How does Baidu calculate my cost per click (CPC) for the ads in Baidu PPC?

The real cost per click for your ads in Baidu PPC is determined by the ranking, the bidding prices, and the quality score.

Below is an example to help you understand:

  Bidding Price Quality Score Ranking
You 3.6 1 1
Competitor 2.5 1.4 2

A = the competitor’s bidding price;

B = the competitor’s quality score;

C = your quality score;

Your real CPC = A * B / C + 0.01

In our case, it is 2.5*1.4/1 + 0.01 = 3.51, which is actually lower than your max bidding price 3.6.