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