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Remarketing - high max CPC, low av. CPC, 36% lost IS (rank) - why?

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# 1
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On a remarketing campaign, I have a max CPC of 25, and average CPC of 9.30, yet I am losing IS due to rank (0% due to budget). If I am not limited in any way by budget, and I am bidding over 2.5 times the average CPC, why would I be losing IS to rank? Surely I should end up paying nearer my bid and losing less IS to rank?

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Accepted by MosheTLV (Top Contributor)
September 2015

Re: Remarketing - high max CPC, low av. CPC, 36% lost IS (rank) - why

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# 2
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Hi Moonlight,

If your avg cpc is very very low as campared with Max CPC, it does not mean your bid is high enough to win ad auction in all placement sites. As its a remarketing campaigns, means some sites where users visits may have high competitions, due to this AdWords is showings lost IS( Ad Rank).
Avg CPC is combined avg cpc of all clicks, so it is not the cost of each clicks.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
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Marked as Best Answer.
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Accepted by MosheTLV (Top Contributor)
September 2015

Re: Remarketing - high max CPC, low av. CPC, 36% lost IS (rank) - why

Top Contributor
# 2
Top Contributor
Hi Moonlight,

If your avg cpc is very very low as campared with Max CPC, it does not mean your bid is high enough to win ad auction in all placement sites. As its a remarketing campaigns, means some sites where users visits may have high competitions, due to this AdWords is showings lost IS( Ad Rank).
Avg CPC is combined avg cpc of all clicks, so it is not the cost of each clicks.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: Remarketing - high max CPC, low av. CPC, 36% lost IS (rank) - why

[ Edited ]
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# 3
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I liked this answer by  @Rakesh Kumar  which illustrates how "average" could be misleading parameter as long as Google does not report the  standard deviation for "average" metrics. 

 

 
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Remarketing - high max CPC, low av. CPC, 36% lost IS (rank) - why

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# 4
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Hi Moonlight, further to the answers you've already received from Rakesh and Moshe, don't forget that Quality Score plays a role here as well.  Quality Score is evaluated for each and every auction and unless your QS is 10/10 for each impression, for all regions, all times, all demographics (which is highly unlikely) then your Max. CPC is not 25, but some percentage thereof.  For example, if you QS is just 2/10 for a particular placement for a particular visitor, your Max CPC is effectively just 5 which for that placement may not be sufficient for your Ads to appear.

 

As Moshe has said, it's important to bear in mind these figures are averages and they are averaged across a very large set of possible options.

 

Jon

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