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Why are automatic CPC prices so high in Shopping Campaign?

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I'm advertising art prints in a shopping campaign and I'm wondering why the automatic CPC costs are set so high. In the tutorials, I see recommendations for bids of $1 or less and the auto bids on my campaign are set at $6-11. Why is the auto-bids so crazy? Will this change over time? (Note: My product price is $150, in case that makes some sort of difference)

 

Thank you

Jeff

www.hangaroundsart.com

Why are automatic CPC prices so high in Shopping Campaign?

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭

Jeff, it is possible that the Benchmark (average competitive CPC) is that high for your market. Bid levels in Shopping, like those in other types of PPC campaigns, are set in an auction process so often they are "bid up" because clicks are worth that much to some advertisers. Remember you are not necessarily competing with advertisers using the same business model; resources; or even product.

 

Have you looked at the "Benchmark CPC" column to see how your bids are set relative to the Benchmark data provided by Google?

 

I have run a lot of Shopping campaigns, but have never utilized automatic bidding.  You might want to try manual bidding, then set your bids around the "Benchmark CPC" level.  Sometimes it takes a while after your campaign is started - days or longer - for the "Benchmark CPC" column to populate.

 

The person you really want to hear from is Celebird, who i think probably knows more about Google Shopping than Google doesSmiley Happy

 

hth

Re: Why are automatic CPC prices so high in Shopping Campaign?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Thanks for the thorough response and good insight, Steve. I really
appreciate the help!

I notice that once the ad started running, the actual average CPC went down
to a more manageable amount; however the auto bid is still crazy at $16.62.
I’m wondering if the ad has to be “seasoned” within Google for it to learn
where the sweet spots are and it throws out a high number for good measure.

Regards,
Jeff


Jeff E
*Visit us online:*
hangaroundsart.com
rethinchome.com

Why are automatic CPC prices so high in Shopping Campaign?

Participant ✭ ✭ ✭
# 4
Participant ✭ ✭ ✭

You're welcome Jeff.  Keep in mind that even though the auto-CPC may be looking high, it's the actual

CPC you should be keeping an eye upon.  Google has a strong tendency to be fair and reasonable. 

So you may never actually see clicks up at $16.62.  You're right things may take a while to settle in, in auto mode. 

 

I would start it on manual, set a baseline, then experiment with auto and compare the results. But either way should work out in the end.