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How does lowering cost per click affect advertising?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I see that you can adjust how much you pay per click. I was wondering how lowering or increasing the cost affects the advertising?

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Accepted by topic author Brett R
September 2015

Re: How does lowering cost per click affect advertising?

Rising Star
# 2
Rising Star

Hi,

 

Well CPC plays a quite big role. Let me explain in simple terms. CPC is a one important factor that helps to decide your quality score . Simply quality score will decide what is the position your ad is showing. But its not the only thing. Depending on your quality score your CPC can be decrease or increase.

 

So answering your question increasing or decreasing CPC can directly affect your ad rank. You should align your business goals with CPC strategy and see how can you decide best CPC for you. 

Re: How does lowering cost per click affect advertising?

Top Contributor
# 3
Top Contributor

Hi Brett, Nisa has gone for a fairly complex answer so I'll put it in simpler terms in case that's what you were looking for.

 

When a search or a web page view by someone matches your targeting options, your Ad is entered into an auction.  Just like a real-world auction, each advertiser has a "bid" that is associated with that Ad and it is this bid that is the CPC.  Your CPC therefore has a direct effect on your ability to compete in these auctions against other advertisers.

 

When thinking of a Google Search campaign, adjustments in CPC are most likely to affect the position of your Ad in the results.  Bid high and your Ad might be among the top Ads shown, bid low and it could be right down the bottom, maybe not even on the first page or possibly ineligible to appear at all if the bid is too low.

 

When thinking about CPC you've got to juggle good position against costs.  Appearing high in the results is likely to result in a lot of clicks and good coverage, but will also cost more than appearing lower.  Appearing very low could be quite cheap, but you may get little (if any) traffic.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: How does lowering cost per click affect advertising?

Follower ✭ ✭ ☆
# 4
Follower ✭ ✭ ☆
Yes, i agree with Nisal, The importance of "Quality Score" is beyond