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Does User Location affect Average CPCs?

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# 1
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With Enhanced Campaigns allowing us to add bid modifiers for locations I've been looking at the Geographic report on the Dimensions tab in AdWords.


Does a user's location affect how much a click costs for us? We see quite a large range of average CPCs across locations but is there a correlation there or is it random?


Any information on how location has an impact on our average CPCs gratefully received!

1 Expert replyverified_user

Re: Does User Location affect Average CPCs?

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# 2
Top Contributor

Hi Tom, welcome to the Community.


Does user location affect CPC?  Yes, definitely!  Part of what you pay per click is down to the competition you face and that can vary from region to region.  For example, if you targeted the whole of the UK you could be competing with 10 other companies in the Brighton area and 10 entirely different companies in Edinburgh and, of course, you could be competing with the same companies.


You don't say if you're using Search or Display Campaign(s) but if you're using a Display campaign - and if this makes sense for your business - you might find your Ads appearing on a whole different set of websites for browsers in northern England and those in southern England.


If we knew exactly what you were selling we may be able to make some educated guesses about how region could affect CPC but to be honest the best way is simply to examine your own data.  Google Analytics can give you great insights into regional performance and that's where I'd begin.  In fact, I wrote an article on the subject just recently:


Enhanced Campaign Location Bid Adjustments



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