CPC or cost per click is a PPC advertising metric that lets you determine what you pay for each click you get through your Ad campaign. You are charged only when someone clicks your Ad. Thus, you get a lot of impressions on your Ads for free and save yourself from spending on unproductive Ads.
When you are advertising on the platforms like Google Ads, you can increase or decrease the maximum CPC to pay for the Ad placement or keyword. But what is the maximum ideal cost per click bid for the website traffic? Well, there is no one-size-fits-all answer to this question. Moreover, you can’t determine the exact figure but an approximate value by studying statistics.
Here, PPCexpo tell you what to consider for increasing the maximum CPC bid for the website traffic.
CPC For Google Ads
In Google Ads, the amount you pay for each click and the quality of traffic you get determines your ROI. Thus, even if your goal is to drive more website traffic, the traffic should provide value to your business. Though the average CPC is different for different businesses or industries, the traffic should be affordable for you.
Below are some of the factors to keep in mind while determining the maximum CPC-
Enhanced Bidding
Just like other types of PPC, Google ads are places by the auction process. Also, these ads ensure the high level of customers. Suppose you enter a search term. Google will find out whether this term contains the keywords advertisers are placing bids on. If they are, Google starts Ad auction based on the Ad rank and its position using the following formula-
Maximum CPC bid x Quality Score = Ad rank
Based on the Ad rank and QS, Google determines how much an advertiser will pay when his Ad. Google uses the formula mentioned below to calculate this-
Ad Rank below you/QS of your Ad + $0.01=CPC
Bidding is a time-consuming process. If you don’t have enough time to do it manually, ECPC (enhanced cost per click) can help you. Once you mention the CPC advertising goals, Google will automatically adjust the bids.
Budget
One great approach to decide your maximum CPC is to give each campaign a daily budget. This way, you can control the CPC rate and focus more on the campaigns that are producing results. Another way to decide the CPC budget is to determine how many visits you need to complete a sale.
For example, if the conversion rate is 2% and you are paying $3 for a click, you will likely lose money. But, if the conversion rate is 7 to 8%, $3 is affordable. You can use Google Keyword Planner to know which keywords will give you high traffic to generate a sale so that you can decide your CPC budget.
Just keep in mind that the actual cost of CPC that you could charge depends on various other factors. However, you will not have to pay more than your real cost per click.
Keywords
Increase the maximum CPC based on your keyword research. Doing so will help you know what your competitors are bidding on and how much CPC bid should you set to compete with them. This will help you get insights of which keywords are having high volume and how many people are bidding on that keywords. When you find the most valuable keywords, you can build your budget accordingly.
While you can adjust your maximum CPC, you pay high for highly competitive keywords. One trick is to choose to bid only on fewer keywords or run one Ad campaign at a time. Even if you have a flexible budget, take time to do more keyword research and bid on the keywords that will offer a high return.
What Can You Improve In Maximum CPC Budget?
Sometimes, you may find that the Ads are placed in a low position even after adjusting the keywords and maximizing the CPC. It happens when Google doesn’t assign a high-quality score to each of the keywords. You can wait for a couple of days to see if the QS improves or increase the maximum CPC bid to get more clicks.
In order to increase your maximum CPC and generate more traffic, you can make the following improvements-
- Improve the QS of the keywords. If your Ad has a high QS, it reduces the advertising costs and shows an increase in the maximum CPC for a keyword. Your keyword should be relevant to the Ad and the landing page to achieve a high QS.
- Use Ad extensions in the Ads. If you don’t, Google will increase the cost per click for you.
- Adjust your bids by spending more on the locations or devices that give better conversions.
- Improve the website’s performance to increase the conversion rate.
If your campaign is still not delivering results, try to bid higher than suggested to improve the CTR. If the CPC costs too high, reduce it slightly to find the adequate maximum CPC.
To Sum Up
Finding the right maximum CPC amount is the key to driving more clicks and traffic to your website via the Google Ads campaign. While you can’t control your competitors’ maximum CPC bids, but you can increase or decrease your max CPC to place your Ad at a position where they are most profitable.
The price of your products and services, the quality score of your Ads, quality of keywords, etc., are some of the things that influence the ROI. So, keep track of all these things, and then experiment with increasing your CPC slightly. Analyze what happens, and adjust your bid based on the outcomes.