Question

You bid $5.00 on a click on your facebook ad. The next highest bidder only pays $3.00 to target an ad at the exact same audience. How much will facebook make you pay to win the bid?

Answer 1

You bid $5.00 on a click on your facebook ad. The next highest bidder only pays $3.00 to target an ad at the exact same audience. How much will facebook make you pay to win the bid?

Explanation:

A bid is the amount an advertiser is willing to pay for some action performed.

There are different kinds of bids. They include cost per click or cost per 1,000 impressions (CPM).

Cost per click (CPC) is a refers to the amount an advertiser  pays  to a publisher for each click on an ad. CPC is also referred pay per click (PPC).

Cost per impression (CPM) refers to the amount  an advertiser is willing to pay per 1,000 views of an advertisement

Facebook will make you pay $3.01