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Increase CPC?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I am currently running some Adwords shopping campaigns. They are performing really well and I am trying to figure out how to make the most out of them.

 

To be profitable I need the cost per conversion to be less than £25.

 

A few of the campaigns have a cost per conversion of under £10 at the minute. For these campaigns does it make sense to increase the max cost per click to get more traffic and hopefully more conversions (even if these conversions are slightly more expensive)?

 

Or does increasing it mean we will be paying more for all of our clicks so conversions that currently cost us less than £10 will end up costing more?

 

I guess what I am trying to understand is will increasing the max cost per click affect all clicks or will the more expensive clicks only apply to the new traffic we get access to by increasing the max cpc?

 

If it only applies to the new traffic then I assume it makes sense to keep increasing the max cpc until the average cost per conversion is close to £25.

 

Thanks.

1 Expert replyverified_user

Increase CPC?

Top Contributor
# 2
Top Contributor

Hi, Alan. Increasing your bids means increasing your ad rank, meaning that you will take part in more auctions. That means you'll get some impressions that you might not have gotten before plus some impressions in positions higher than before.

 

As a result of that, your CPC may well be higher than before. In the end, most likely all that matters is your profit.

 

Luckily, even shopping campaigns may benefit from the bid simulator, if your product groups received enough impressions recently. You can check that and you can also check your Search Impression Share for your profitable product groups. If you find it to be low, you can bid higher and increase the share.

 

Also, please note that you can use CPA bidding, if you have at least 30 conversions in the past 30 days. And as long as you set your target CPA higher than your current CPA, you should get more more conversions, provided that you are currently losing impression share. If you're not, it's debatable, because you may only increase your position and your CPC and still get the same amount of conversions for a higher CPA.

 

It's up to you to test. But there is potential for improvement.

 

Hope it helps.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Increase CPC?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Thanks for the info.  I checked and the Bid Strategy is set at Manual CPC (Enhanced CPC enabled).

 

As enhanced CPC is enabled then should I not need to work about increasing CPC as this should happened automatically to increase conversions?

Increase CPC?

Top Contributor
# 4
Top Contributor

Hi, Alan. Enhanced CPC only adds up to 30% to your bids. (Excuse the brevity, writing on mobile).

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.