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Why does Planner show an increased CPC when CTR is improving?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

In the Planner as I increase my bid amount, then as expected, the position and CTR improve, but the CPC escalates.

 

As the CTR improves, shouldn't the CPC drop?

1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author William H
September 2015

Re: Why does Planner show an increased CPC when CTR is improving?

Visitor ✭ ✭ ✭
# 2
Visitor ✭ ✭ ✭

I've figured out the answer.

 

A higher CTR can mean a higher ad rank. Your CPC depends upon the bid amount of the guy ranked immediately below you, and that bid amount can be higher than what you had before - when your ranking was lower.

 

So, improving your CTR may give you something you don't wiant: higher CPC.

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author William H
September 2015

Re: Why does Planner show an increased CPC when CTR is improving?

Visitor ✭ ✭ ✭
# 2
Visitor ✭ ✭ ✭

I've figured out the answer.

 

A higher CTR can mean a higher ad rank. Your CPC depends upon the bid amount of the guy ranked immediately below you, and that bid amount can be higher than what you had before - when your ranking was lower.

 

So, improving your CTR may give you something you don't wiant: higher CPC.