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Sudden and unexplained increase in CPC. Any insight?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I have been managing my company's AdWords account for over a year.  We have been consistent, only making minor tweaks over time to ads and keywords.  We don't have a lot of competition as our product is very niche.  Over time, we have seen our clicks per month increase and our average cost per click slowly decrease.  Suddenly in the past month, our average cost per click has risen to an all-time high. Not much has changed- certainly not any big changes in keywords or anything, and I haven't noticed a major change in quality scores.  Can anyone help shed some light and a possible remedy?

1 Expert replyverified_user

Re: Sudden and unexplained increase in CPC. Any insight?

Top Contributor
# 2
Top Contributor

Hi Meganstar,

 

You did not share much details unfortunately. What I can add in general is that reasons in such cases are usually not internal, but typically external. My best guess is that either a new competitor is trying to break into the niche or an old one has decided to raise bids in an effort to grab a larger market share. There are also possible scenarios which are less likely. E.g. one of them may have edited their ad copies and/or websites or landing pages to earn a higher QS and Ad Rank which ups your CPC too.

 

Best,

Lakatos

 

 

Re: Sudden and unexplained increase in CPC. Any insight?

Participant ✭ ✭ ✭
# 3
Participant ✭ ✭ ✭

Meganstar

 

could you perhaps provide some information about of bug the increase is in absolute numbers and/ord percentage?

 

could you perhaps also check whether your average position has decreased at the same time, and from what position to what position?

 

 

Marked as Best Answer.
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Accepted by Karl (Explorer ✭ ✭ ☆)
September 2015

Re: Sudden and unexplained increase in CPC. Any insight?

Badged Google Partner
# 4
Badged Google Partner

"My best guess is that either a new competitor is trying to break into the niche or an old one has decided to raise bids in an effort to grab a larger market share."

 

One competitor can create a whole new marketplace for a specific KW, or set of terms. There are lot's of things to consider to find out what's really going on, but avg. pos. may be a big clue to the competition possibility. Start by using the preview tool and ad dignosis for the top impression, clicks, conversion, etc. KW terms. Then try to isolate those terms and keep track of your changes. Continue previewing and viewing the data to try and see if you can spot some patterns, or if you see something that stands out. 

 

"our average cost per click has risen to an all-time high." Averages can lie... Try to find and isolate your top performing terms, and focus your efforts there. If you can reduce the avg. CPC and increase the number of clicks for your top click generating term, then the account averages will improve faster. If there are a few terms that are far below average performance, perhaps consider pausing those terms, or even adding them as negatives. A few calculated changes to the top and bottom of the pyramid goes a long way to improve the account, on average. Smiley Happy

Tom

Re: Sudden and unexplained increase in CPC. Any insight?

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
I have experience the same problem...only my drastic changes occurred in only one day..less than 24 hours in fact. No changes to ads, no influx in first or top page bids, and the same hit for the keyword with the same, unmodified ad...yesterday, I received a click for the keyword/phrase to the same ad and it cost less than $2..today, the same exact thing happened: same keyword/phrase, same ad, and it cost over $9!!!