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Avg CPC doubled

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭


   I created my adwords campaign a month ago. At the starting, my average cpc was normal but for the past (4-5) few days it has increased more than 200%. I made no change to my campaigns and keywords (no addition and deletion). So how my avg CPC got doubled. It has affected my business drastically. Please provide me a solution for this.

Re: Avg CPC doubled

Visitor ✭ ✭ ✭
# 2
Visitor ✭ ✭ ✭

Hi Kanishtha,


I would not only focus on your CPCs but also on the overall profitability of your campaign and you should analyze your performance at keyword level to identify the issue.

I don't think you are providing enough information to find a solution to your case, but in general, I would look at the following:


- Manage your bids - based on your revenue/ROI targets; as a general rule:
   * Keywords with good exposure, but low traffic/conversions should be bid down (you don't want to be wasting clicks or impressions)

   * Keywords with poor exposure, and good conversions should be bid up (Opportunity; these are a good source of revenue, bid them up to get as many clicks as possible)

   * Keywords with very low exposure with no chances for clicks should be bid up (give them a chance, and monitor performance)

   * Mantain position for keywords with good exposure and good volume of traffic/conversions based on your goals


- Review your match type strategy. Try to segment your adgroups as granular as possible, using just one or two broad match types within each, and several exact and phrase varations.


- Carry out a Search Query Report; especially if you are using broad match in excess. You should pull a search term report and add negatives for irrelevant queries. CPC is directly related to Click-through-rate, and you don't want to be serving ads to irrelevant queries damaging your CTR (QS)


- Use 3 ad variations per adgroup and set the rotation to optimise for clicks. This will increase your chances to improve CTR. Try to change especially the headline (don't change just description line 2)


- Review your campaign settings:
  * Are you targeting just the search network or you included the content as well?

  * Make sure you target the relevant location and language

  * Be careful with device targeting (although with new enhanced campaigns it won't be possible) within the next 6 months you can still split your campaigns to target mobile/tablet/desktop. CPCs and conversion rates will be very different.


Add sitelinks to your campaign (if you are on top 3 position) this will increase your CTR


Hope it helps!

Re: Avg CPC doubled

Explorer ✭ ✭ ✭
# 3
Explorer ✭ ✭ ✭

Punch is right. Don't focus on CPC alone which is what most people do. Focus on whether or not the campaign is profitable at a reasonable ROI or CPS, whatever your preferred method of gauging profitability is.


As for why your CPC went us, there could be many reasons:


You changed something. Obviously increasing bids is one. You may have added keywords. Adding a too generic keyword that has a high search volume and costs more may increase your CPC.


You may have changed an ad. This may have changed your QS which affects your CPC calculation.


Competitors have made changes to bids, keywords or ads. Adwords is an auction and everything that any advertiser does affects other advertisers. It is not a vaccuum and everything is in constant flux.


The best advise is to test all the time. Review settings and keywords. Get that QS up with better ads. Higher QS not only reduce CPC in general, it isolates you more from the effects of what other advertisers do.