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Why adgroup Max CPC is Required

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# 1
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Good Morning,

 

I had read max keyword CPC, Daily budget but never find a article on adgroup max cpc.

 

As per my understanding adgroup max cpc means how much (atmost) i can spend on keywords of that adgroup in complete day.

 

As Google is supposed to bypass all rules for sake of better performance.  Does it also means that setting up adgroup max cpc does not matter if you have a much performing keyword in that adgroup.

 

 

 

 

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Accepted by MosheTLV (Top Contributor)
September 2015

Re: Why adgroup Max CPC is Required

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# 2
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Hey Coupon A,

If I understand your question correctly you are refering to default max CPC for adgroups?

If that is the case setting the cpc at this level means that any keyword you add the that ad group will default this CPC. You can then of course change each keywords CPC and it will then ignore the default CPC for the ad group.

With regards to how much an adgroup spends, this is your budget that you set, not you max CPC. This number is set at the campaign level.

Remember that CPC stands for cost per click, and refers to the amount you will pay for each click, not how much you will spend on that keyword in totality.

learn about CPC here:
https://support.google.com/adwords/answer/116495?hl=en

Learn about budget here:
https://support.google.com/adwords/answer/6312?hl=en


Hope this helps

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Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: Why adgroup Max CPC is Required

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭
Hey Coupon A,

If I understand your question correctly you are refering to default max CPC for adgroups?

If that is the case setting the cpc at this level means that any keyword you add the that ad group will default this CPC. You can then of course change each keywords CPC and it will then ignore the default CPC for the ad group.

With regards to how much an adgroup spends, this is your budget that you set, not you max CPC. This number is set at the campaign level.

Remember that CPC stands for cost per click, and refers to the amount you will pay for each click, not how much you will spend on that keyword in totality.

learn about CPC here:
https://support.google.com/adwords/answer/116495?hl=en

Learn about budget here:
https://support.google.com/adwords/answer/6312?hl=en


Hope this helps