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CPC increasing , but the performance is improving, why

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Even if the average CPC of a campaign is increasing from one month to another, the performance can still be improving, how is that possible?

Re: CPC increasing , but the performance is improving, why

[ Edited ]
Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆

Hi Nadia,

Welcome to the AdWords Community! :-)

It depends on which metric you have agreed to use to measure the account's performance and success - If you are talking about CTR and Average Position then you will naturally see these two metrics improve as you increase Max CPC bids to gain higher positions in search results.

There's so many different answers that I could give to this question and my answers would depend on the metrics you're reporting on. Could you clarify which metrics are giving you an indication that the account's performance has improved?


All the best,
Spike


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Re: CPC increasing , but the performance is improving, why

Participant ✭ ✭ ✭
# 3
Participant ✭ ✭ ✭
Hey nadia,

For the best answer, I would suggest answering Spike-Patching's questions as the information will lead to a succinct answer. In the interim, let me give a few possible answers.

A slight increase in CPC over time could simply indicate an increase in competition, whether it is simply your current competitors bidding more aggressively in order to challenge your position or it could be new competitors increasing the auction price.

A campaign can easily see an increase in CPC overtime while improving its performance (whether that be increased conversions or clicks or other relevant KPI). In theory your account should always be improving due to the testing that you are doing, such as ad testing. Furthermore, CPC and performance are not mutually exclusive, a high CPC does not indicate a bad account or a low CPC a good one. In fact increasing your CPC can lead to a boost in account performance.

But as said earlier, without specific information a relevant answer in your case is hard to give. These are just a few thoughts on the subject.

Re: CPC increasing , but the performance is improving, why

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭
Thanks for your replies, I wondered with generally how it could be possible when I also discussed it with others who do not have the answers. But now I have a handle of what it can be for the reason. Thanks Smiley Happy