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Paying Too Much?

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# 1
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How does one gauge if an account CPC is too high and what actions would be suitable to reduce CPC in a fairly high competition sectors? 


I have various clients in various sectors. Some have CPC's that are 1000% higher than others.

Re: Paying Too Much?

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# 2
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Hi Gary,

Good question. But the answer comes down to... it depends. CPC varies greatly according to vertical. the more competition and the higher the LTV or product value the higher the CPC in general.

There is no standard CPC on adwords as each vertical is vastly different.

The best way to guage your CPC and control how high it goes would be through QS and Ad rank. Of course if you have a high QS (8 and up) then you have little to worry about as you are achieving a good CPC in comparison.

Learn about Ad Rank here:

Learn about QS here:

A useful link for some tips regarding optimisation:

Hope This helps

Re: Paying Too Much?

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# 3
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Thanx that makes sense. Is a better QS generally associated with a better CPC? I was lead to believe that anything 5 or up should be kept? I guess there are no hard and fast rules here, like anything else?

I haven't used the Ad Rank yet, will take a closer look at it shortly.
Marked as Best Answer.
Accepted by topic author Gary Y
September 2015

Re: Paying Too Much?

[ Edited ]
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# 4
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Hey Gary,

There are no hard and fast rules per se, just a few best practices. I would not suggest only keeping words 5 or above as certain keywords are definitely worth keeping despite low QS (comeptitor keywords come to mind). A high QS is a good indicator of a low CPC, and is the tactic used most often to lower CPC (through increasing QS).

QS is definitely associated with a lower CPC as high QS gives you a 'discount' from 6 and up.

Hope this is a bit clearer now.