Showing content from https://support.google.com/google-ads/answer/6326 below:
Maximum CPC bid: Definition - Google Ads Help
Maximum CPC bid: Definition
A bid that you set to determine the highest amount that you're willing to pay for a click on your ad.
- If someone clicks your ad, that click won't cost you more than the maximum cost-per-click bid (or "max. CPC") that you set. For example, if you set a $2 max. CPC bid, you'll never pay more than $2 for each click on your ad. The actual amount that you pay is called the actual CPC and is shown in your account's "Avg. CPC" column.
- A higher bid generally helps your ad show in a higher ad position on the page.
- You'll choose between manual bidding (you choose your bid amounts) and automatic bidding (you set a target average daily budget and the Google Ads system automatically adjusts your max. CPC bids on your behalf, with the goal of getting you the most clicks possible within that budget). With manual bidding, you'll set one maximum CPC bid for an entire ad group, but can also set different bids for individual keywords.
When your Max. CPC may be exceeded:
If you use the following features, your actual bid may be higher than the Max. CPC bid you have set:
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