You pay only when a customer clicks on your banner ad. The price you pay per click (your CPC) will always be no higher than your maximum bid.

The exact price and whether your ad is being displayed is determined in an auction where you compete with other vendors of related products for the premium placements. If you win the auction, we automatically compute your payment to be the smallest bid necessary to outbid your competition. If you face no competition, you will simply play the smallest allowed bid (the reserve price set by the marketplace).

For example, if Vendor A bid $10 per click, Vendor B bid $8, and Vendor C bid $3, Vendor A would win the auction, and their product would be listed as Sponsored. They would not pay their original bid price, but the price of the Vendor in second place, Vendor B; Vendor A would pay $8 per click.

In this way, banner ads have varying prices but you will never pay more than your bid price per click.

Did this answer your question?