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Maximum upto how much we can set max cpc values in adwords

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# 1
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Maximum how much we can set max cpc value in adwords. what is the maximum limit for max cpc values?

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50Re: Maximum upto how much we can set max cpc values in adwords

[ Edited ]
Top Contributor
# 2
Top Contributor

This was actually covered here a few months back

 

Here's the thread

 

Answer : $1,000 - but I don't know anyone who is working at that kind of level (or event close) the highest I have seen was around $80 and the highest I have personally worked with was around $11.

 

I don't know what you' need to be selling to make $1,000 a click economically sound!

Re: 50Re: Maximum upto how much we can set max cpc values in adwords

Explorer ✭ ✭ ☆
# 3
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>> I don't know what you' need to be selling to make $1,000 a click economically sound!

Me neither. But let's not forget this: just because you set a maximum bid to a certain amount, doesn't mean that's what you'll pay.

I also believe Google somehow takes into account bids that are way above the average for the keyword. In other words, if bids are typically $0.50 to $1 and you bid $5 in an attempt to get the top position (thus trying to get around the ranking calculation despite a low QS or even a good one for that matter), the Adwords system surely has checks against that. Otherwise, it would become a high bid wins system and that would defeat the purpose of QS.

Re: 50Re: Maximum upto how much we can set max cpc values in adwords

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# 4
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That's a good point - but I often worry about the exposure that some clients seem to get themselves into.... I've reviewed accounts where the daily exposure is way above what they would be prepared to actually pay.

Their answer is often - Oh, we never hit those levels, there just isn't the traffic.... but if you have a number of campaigns each with a high daily limit you can quickly get to a point where the exposure is much larger than anyone could be comfortable with.

and the bidding is often based around what others are doing - so if a competitor decides to radically increase their bids, you suddenly pay a lot more for your clicks if your bids and budget allow.

I often like to try and keep the campaigns working close to their daily limits so as to avoid these kind of surprises....

Re: Maximum upto how much we can set max cpc values in adwords

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# 5
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When did it increase?  It was $100 not so long ago.  There was a post here from a guy who wanted to bid more than that ($100) but he never came back to us and said what it was he was advertising, despite several requests!

 

I'm not sure I agree with you Lucid about "high bids".  I think AdWords is a "high bid wins system" simply because, well, the person with the highest bid wins the auction.  Yes, QS is a part of that auction but it's effectively invisible to most advertisers who simply keep increasing their bids until they average 1.0.  I'm more aligned with Steve's way of thinking, that the Max. CPC. value is a "safety valve" that prevents us from paying $20 per click for a day when we would normally pay $3 just because someone else has started a new Campaign with a ridiculous CPC value.

 

Divya, would you care to share with us why you're interested in the highest CPC value?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Maximum upto how much we can set max cpc values in adwords

Visitor ✭ ✭ ✭
# 6
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Just i want to know whether it has any limit or not?

Re: Maximum upto how much we can set max cpc values in adwords

Explorer ✭ ✭ ☆
# 7
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Until this thread, I wasn't even aware there was a limit. It appears there is at $1000 but even at the old $100 Jon mentions, I never came close to that.

>> I think AdWords is a "high bid wins system"

How can you say that? It really is a "high ranking system wins" since ranking is determined by bid and QS. You've taken QS out of the equation and that's contrary to everything Google tells us.

The more I think about it, the more I believe Google somehow prevents overbidding, the "safety valve" analogy you use. Think of it as a bid limit that is used for ranking when you bid over this limit. Make any sense?

Re: Maximum upto how much we can set max cpc values in adwords

Top Contributor
# 8
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How can you not  say that? Smiley Happy  As you know, Ad Rank is determined by Max. CPC x QS, yes?  So in any given situation if your Max CPC is high enough you'll win the auction, regardless of QS.

 

If you bid $10 with a QS of 7, and advertiser B bids $10 with a QS of 6, you'll beat advertiser B.  If I come along and bid $100, I'll beat both of you, even if my QS is 1/10 (effective CPC $10).

 

I haven't ignored Quality Score, I've just suggested that for many advertisers it's not something they consider - bear in mind the QS column isn't even active by default - they simply bid and look at their position.  If you bid enough you'll win, I can't think of a better definition of "high bid wins" situation, especially as the whole process is known as an "auction" where the highest bidder always wins...

 

I'm not suggesting that this huge Max CPC approach is a good idea - hopefully my history here has proved that I'm a big fan of nestling in the #1.2 - #1.4 slot - I'm just saying that IF you wanted to set a ridiculous CPC then in theory you should always be #1.  If you're not #1 with an insane CPC then there's something going on behind the Google scenes that we don't know about.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Maximum upto how much we can set max cpc values in adwords

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# 9
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Q: Ad Rank is determined by Max. CPC x QS, yes?

A: Yes

 

Q: in any given situation if your Max CPC is high enough you'll win the auction, regardless of QS.

A: No. You need 7 or more to be atop the SERPs for example. So no matter how high the bid is, you won't win the auction.

 

In your example, the way we all think the system works (rank = QS x bid), the guy bidding $100 would win. In theory. But that's too easy and if so, then QS means nothing and it becomes a highest bid wins system as opposed to a highest rank system.

 

But I don't think the system is that simple. Ranking is probably not a simple multiplication of two values. Surely to counteract such a scenario, the system normalizes your bid to be in line with what others are bidding. That makes everyone on a more equal footing which is Google's mantra after all, regardless if advertisers consider QS or not.

 

In short, to answer your last question, if you are bidding an insane amount and not #1, yes there's something else going on. I do believe there's more than meets the eye. The way I would do this is simply to normalize bids then apply the ranking formula. Simple and solves this particular problem.