Inside adwords

I was looking at the required blog, inside adwords, and found something that related to the concept of price that we were recently discussing in class. The blog talked about how google is introducing a new option when advertising using adwords. You used to set a certain amount of money you would want to spend and once it reached that limit your ad would be taken down. But with doing this you would have to adjust this amount in order to have a certain CPC. This new option is called preferred cost bidding. The amount that is set will represent the average cpc that will be managed by google.