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CPC and Daily Budget

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Recently I had a talk with a friend of mine that works in a business making most of its revenue from Adwords. They are in a competitive market so their CPC should be fairly high (double checked with Keyword Adwords Tool). That person told me that they spend a great amount of money in Adwords and the CPC is extremely small even for not competitive markets. My question is:

-  Is CPC affected from budget? (I know that this is not supported from Google Adwords theory but there is no other explanation to it if you consider the huge differences from the expected CPC of this market and the actual)

Re: CPC and Daily Budget

Collaborator ✭ ☆ ☆
# 2
Collaborator ✭ ☆ ☆

Hi and welcome to the community's.

 

There are 2 ways to look at this one. If you have a higher budget you can accrue your clicks and impressions faster so you have the chance of improving your quality scores more rapidly (if have are running a good account). Small budgets can take much longer to build up history account history so it takes longer to achieve the same ( even if its well run) 

 

You also have to know which are the better performing keyword and a bigger budget will let you weed out the poor performing ones faster (not necessarily any cheaper though) 

 

The keyword tool is only a guide though, don't take those figures as exacts, it does vary and it can be by quite a bit. 

 

 

Re: CPC and Daily Budget

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

My question is if by raising your Budget a great deal you‘ll have a better CPC. The CPC that my friend told me they have is extremely small! So it is not a matter of acquiring data, even if you had all the data you needed you wouldn’t be able to get QS over 10!

I’m mostly asking if someone had an account or campaign where he/she raised the budget a great deal and as a result noticed a statistical difference in the average CPC of that account-campaign? Of course that means that no other changes made at the account and no seasonality or other factors applied to the account.

Re: CPC and Daily Budget

Participant ✭ ✭ ✭
# 4
Participant ✭ ✭ ✭

if by raising your Budget a great deal you‘ll have a better CPC

 


No. Average CPC and Budget are independent form each other.