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Very Low CPC Despite Increasing Bids?
My average CPC is very low which is causing my account to not reach its monthly budget. I’ve increased the bids, but the CPC has still not increased at all. Does anyone know why this is happening?
I heard this might be due to competitors not bidding as much, but if that’s the case shouldn’t my rank be improving as well? (it is not, btw) Is there anything else I can do to help my account spend more?
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2 Replies
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Why are you focusing so hard on your average CPC?
You need to look at CPC as it relates to your impression share and impression share lost to rank. Looking at all of those together will diagnose your issue.
If impression share is low and impression share lost to rank is high = your bids are too low and need to be increased.
If impression share is low and impression share lost to budget is high = you can sustain a budget increase.
If impression share is high and impression share lost to rank is low = you have hit the cap on search volume for the given keyword list.
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The only factor your bid plays in your avg CPC is the upper bound. Beyond that, it’s controlled by the cost imposed upon you by the bidder(s) below (their “ad rank”) . It’s common to increase bids and 1) not win more ad impressions / move up an ad slot and therefore 2) not see an increased CPC. This is especially true in undersold auctions.
If you have available funds, you should be increasing your bids until the incremental cost/click reaches your expected value.
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