What is the Google AdWords Discounter?

The Google AdWords Discounter is Google’s engine that calculates how much you pay for ad placements on Google. The Google AdWords Discounter compares your ad bids to your competition and automatically reduces your actual cost per click so you pay the lowest price possible for your ad's position on the page. The Google AdWords Discounter ensures that you only pay the minimum amount required to exceed the rank of the next ranked ad.

Google AdWords uses a bidding process to determine which ads are run on Google and in what order. In simple terms, the ads with the highest bids are ranked higher than ads with lower bids, although this isn’t always the case since keyword quality score is also a factor in ranking ads.

When your ads are eligible for placement and associated keywords are searched, Google instantaneously compares your maximum CPC (max CPC) bid and keyword quality score to your competitors. The Google AdWords Discounter ensures that ads with a combination of higher bids and higher quality scores rank higher than ads with lower bids and lower quality scores. Plus, the Google AdWords Discounter makes sure you only pay the minimum amount required to exceed the rank of the next ranked ad. For this reason, you’ll often pay less than your max CPC bid, which saves you the unnecessary expense.

See: What makes people instantly click Google Ads now?