Describe the circumstances surrounding increasing and decreasing the CPC bids on Adwords.
Advertisers set bids to tell the search engines what they are willing to pay per click. Often, the advertisers are charged much less than what they bid. This auction model Google uses is called a second-price auction. In a second-price auction, the winner does not pay what he bid but instead pays a penny more than the bid of the next-highest bidder. In AdWords, rather than paying the CPC amount he bid, an advertiser will pay one penny more than the bid of the advertiser below him.