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How should I change my bid. CPC is higher than Benchmark.

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# 1
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My Benchmark CPC is a lot lower than my actual CPC. For this to perform at its best should I raise the bid?

 

Cheers. 

1 Expert replyverified_user

Re: How should I change my bid. CPC is higher than Benchmark.

[ Edited ]
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# 2
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Hello Simon,

 

Please know that, how much you are charged is always based on your competitor. Google always tries to charge the least minimum amount possible so you can outbid your competitor and occupy the ad position.

 

Now, if the present Max CPC is not getting you many clicks then you must conider to increase the Bid. However, check the Ad Position and if it is appearing at lower positions, consider increasing the Bid. (However, Ad Position. simply does not depend on Max CPC but also on Quality Score (and the quick way to increase the Ad position is to increase the Bid)

 

Please also check the Estimated First Page Bids and Estimated Top Page Bids columns for your keywords and make changes accordingly. If it still does not improve then check these below things as well.

 

Please also, check the Lost IS (Rank) and Lost IS (Budget) to check how many times your ads lost the chance to serve the ads. If the Lost IS (Rank) is high, then you must increase the Bid value and also work on improving the Quality Score.

 

I would suggest you to watch few videos on Ad Rank and Auction, so you can understand this better.
https://www.youtube.com/watch?v=PjOHTFRaBWA
https://www.youtube.com/watch?v=a8qQXLby4PY

 

Hope this Helps, Please write back should you need any further help.


- Prashanth Reniguntala

Re: How should I change my bid. CPC is higher than Benchmark.

Top Contributor
# 3
Top Contributor

Hey Simon,

 

It's actually a good idea to benchmark CPC in your AdWords campaigns, but in my opinion, your prime aim should be to get higher ROI gradually by different options you have inside AdWords.

 

My suggestion would be to try and achieve your benchmark CPC if you can upto certain extent, but that really depends upon many factors which could be sometimes uncontrollable. For example the growing competition. So in case the overall competition for some keywords increases, there might be a possibility that you are not able to control your CPC. I do agree that Ad Rank is really an important factor where Quality Score, bid and how well you are using your ad extensions matters a lot. But you cannot control the outside factors. So keep that in mind while optimizing the account.

 

My 2 cents!

Pankaj

Re: How should I change my bid. CPC is higher than Benchmark.

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# 4
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Sorry, I have realized that I had made a mistake on this question. I was wondering whether to increase my bid as my CTR is higher than my Benchmark CTR. Thanks!

Re: How should I change my bid. CPC is higher than Benchmark.

Top Contributor
# 5
Top Contributor

Hello,

 

A high CTR is always good. So in case you benchmarked some number and have attain higher than that, you should be happy with this Smiley Happy

 

Can you explain what issue you are facing in your account in terms of optimization process in your account?

 

Pankaj

Re: How should I change my bid. CPC is higher than Benchmark.

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# 6
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At the moment i'm going through and removing non-performing keywords. I was just wondering when I should be raising my bid to capture more impressions?