-
CPC has halved by over 50% and can’t find out why.
Hey everyone,
Hope you're all doing well!
I'm currently running a conversion-based campaign for a client through SA360/Google Ads with a tCPA bidding strategy. The campaign has been performing well, so the golden rule: if it works, don’t touch it.
While preparing a report, I noticed something interesting: our CPC has halved over the last two months, which has led to a surge in conversions. From May to June, our average CPC was $6.35, but from July to August, it dropped to $3.33, and I haven’t made any internal changes.
It’s obviously a great result, but I’m trying to understand why this has happened. I checked our auction insights and saw more competitors in the space, which makes me wonder if they’re bidding less aggressively. However, I’m also considering other possibilities like:
- Seasonality changes that might have affected search demand or competition.
- Algorithmic optimizations on Google’s side that could have adjusted bids for more efficient placements.
- A shift in user behavior or demographics within our target audience, possibly resulting in lower-cost clicks.
- Better quality scores on our ads over time, leading to lower CPCs.
Has anyone else experienced this kind of drop in CPC with a tCPA strategy? Any thoughts or insights on other potential factors I might be missing?
Where else can I look?
-
1 Reply
-
How were other key kpis affected?
CPM also down?
CTR go up?
Conversion rate go up?
Promotional offers?
What was cpc YoY? 2022?
Any changes to bid strategy?
Is this e-commerce? If so, have you checked the merchant center?
Does GA4 identify any outliers?
Has your landing pages changed?
Has your website speed or web page speed improved?
-
Yeah. Either a big spending competitor or three stopped advertising or maybe you did a really good job passing conversion data.
-
>Has anyone else experienced this kind of drop in CPC with a tCPA strategy?
I have seen something like that but it was when we had made some radical changes to the website.
We went from WordPress to SSG (static site generator) because it reduced the loading times from 1.1s to 0.39s.
Besides the reduction in CPC we saw something like 480% increase in conversions and all other KPIs turning green across the board.
Log in to reply.