Can increasing CPC decrease cost per conversion?

Forum White Hat SEO PPC Can increasing CPC decrease cost per conversion?

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  • #23882
    seohelper
    Keymaster

    Since I’m guessing Google doesn’t randomly choose who is part of the cheapest 20% impression share for a competitionless keyword, they must be the ‘lower potential value’/’least likely to convert’ people, right? [unless google is trying to lead us into increasing our budgets by doing the opposite?]

    Therefore, could increasing my CPC and budget actually decrease my cost per conversion?

    Should I just increase my budget to get ~80% imp. share for a few days to see? I don’t want to spend too much more on a hopeless project.

    Any help/links/anecdotes are greatly appreciated as I couldn’t find anything about this. Thanks!

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    More info if needed:

    I’m trying to validate a novel product (niche growing market, but the product requires a little bit of education to understand, those searching my keywords aren’t looking for my product) with a Shopify website and Google Ads. I have my manual CPC set to $1.00, get an average CPC of about $1.00, have a budget higher than my max daily spend (~$20.00), my countries are set to higher-income English speaking ones, and I get about 20% impression share for keywords no one else is bidding on. Right now I’m on the border of profitability so I’m just trying to think of ideas- I didn’t expect the ‘default’ CPC for competitionless and previously unmonetized keywords to be so high 🙁 lol

    #23883
    gnaiz

    The bidding affects timing and market competitiveness during your bid. So if you’re bidding at $1 then you may be only hitting a specific time frame that has x% efficacy. By Bidding more, your more likely to show in a different time scope. This doesn’t necessarily mean it will perform better. It’s worth testing.

    What we do is different but my bids are in tCPA and sometimes setting a higher bid for us gets us much better ROI but our industry is weird and timing affects our RPC

    #23885
    beingtj

    Setting a higher bid can be helpful but is mostly a tricky bet. Your entire budget might get exhausted before getting those important “could be conversion clicks”.
    Also, if your product is new then making video ads on YouTube can be a helpful idea to teach the audience about your product, otherwise you might find yourself losing valuable clicks.

    #23884
    TTFV

    Shopping works differently than regular search ads, in that you don’t have granular control over what you bid for specific search terms.

    In general, low manual bids will yield most of your impressions and clicks for lower value search terms. Higher manual bids will yield impressions and clicks for a wider range of search terms. And, when you block lower quality search terms that will further increase the value of the inventory you’re bidding on.

    Of course, once you choose automated bidding or Smart Shopping that changes the game as Google will bid on the full range of inventory trying to predict where conversions will happen.

    With regular search you should be bidding (if manual) based on individual keyword performance. Bidding up on “everything” isn’t going to help you.

    #23886
    anci_panci

    Hey, not sure how much you are spending, but did you try any strategy that optimizes for conversions like tCPA? I only use CPC when starting or there are not enough conversions to optimize for them.
    To answer the question, in theory it could be true, but I didn’t see it happen in reality. Maybe if your bids are really too low to achieve anything, I usually try to at least appear on the first page to get some traffic, you can see the estimated first page bid in google dashboard.
    Btw, I’ve seen you are on Shopify, my colleague’s are hosting a [free webinar](https://owk1tbhcypq.typeform.com/to/BJiNqwWH?utm_campaign=webinar&utm_medium=reddit&utm_source=social) next Wednesday (July 14) on how to fix the **most common mistakes that may be hurting your Shopify store sales**. They will talk about ad setup mistakes that are potentially wasting your budget without bringing in sales, how to build landing pages that convert, etc. Based on your question I thought you might be interested, so check it out. If you can’t make it live, there will be a recording available for those who registered.

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