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Ad-Testing: Do you look for Avg. CPC

Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

Hey there,

I was just wondering if any of you guys take "Avg. CPC" into consideration when comparing Ad-Performance (A-B-Testing). I have so for treated "Avg. CPC" fluctuation at the level of an Ad as pure chance. 

 

How do you approach this?

 

Cheers,

Jochen

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Accepted by topic author Jochen S
November 2016

Ad-Testing: Do you look for Avg. CPC

Top Contributor
# 3
Top Contributor

Hi Jochen,


For me only two metrics matter for ads - CTR and Conversions. With all else being equal, these can be combined as Cost per Conversion (because higher CTR lowers cost), but only if there are enough conversions for the numbers to be meaningful.

 

CPC is not directly relevant to ads.

 

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Ad-Testing: Do you look for Avg. CPC

Explorer ✭ ✭ ✭
# 2
Explorer ✭ ✭ ✭

In my opinion, Avg. CPC for Keywords would be more accurate because you can see who else is bidding on those terms from an Auction Insights report, and see your impression share versus those competitors. - https://support.google.com/adwords/answer/2579754?hl=en

 

When doing A/B testing I mostly compare CTR, Conversion Rate, and Cost/Conv.

Marked as Best Answer.
Solution
Accepted by topic author Jochen S
November 2016

Ad-Testing: Do you look for Avg. CPC

Top Contributor
# 3
Top Contributor

Hi Jochen,


For me only two metrics matter for ads - CTR and Conversions. With all else being equal, these can be combined as Cost per Conversion (because higher CTR lowers cost), but only if there are enough conversions for the numbers to be meaningful.

 

CPC is not directly relevant to ads.

 

Ad-Testing: Do you look for Avg. CPC

Participant ✭ ✭ ✭
# 4
Participant ✭ ✭ ✭

Per Rob & Dean, although ads are in the mix of things that effect quality score and therefore CPC, you should not think of them that way or your will get confused.  The average CPC is a keyword-level parameter and it is strongly influenced by both your bid, and the quality score. If you ad copy is strong and highly relevant to the keyword, then it will have a good CTR and conversions will happen (assuming the landing page is also right). As Rob observed, it all comes down to CTR and Conversions. That includes the conversion related stats: cost per conversion or CPA, conversion volume, and conversion rate.

Ad-Testing: Do you look for Avg. CPC

Top Contributor
# 5
Top Contributor

I first optimize the conversion on the landing page to conclude which variant / version of the landing page converts better.  Only after this part is completed, I move to (optimize)  the ad-group level and  the keyword level, and optimize the CPC and the ad-copy.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Ad-Testing: Do you look for Avg. CPC

Explorer ✭ ☆ ☆
# 6
Explorer ✭ ☆ ☆

@Dean E @RobSkelton @Steve B have shared there experience . Read it will help @Jochen S

Ad-Testing: Do you look for Avg. CPC

Follower ✭ ✭ ☆
# 7
Follower ✭ ✭ ☆

Thanks a lot for all your ideas! This really helped a lot!