Penalties & discounts

Penalty

The amount of money that a campaign, ad group or keyword has lost or rather been penalised by for having a quality score below 7/10.

Discount

The amount of money that a campaign, ad group or keyword has  has been discounted by for having a quality score above 7/10.

How are they calculated?

We use the following formula for average CPC to estimate the difference in click costs at quality scores above or below 7/10.

Actual CPC = A/QS + $0.01