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What to do if my campaign is constantly hitting CPC bid limit?
My campaign is constantly hitting CPC Bid Limit, or very very close to the Bid Limit. And it says "Bids may not be fully optimized". My thought process is, if I increase the CPC Bid Limit, will my CTR Increase thus possibly reducing CPC? Or will increasing my bid limit just use more of my budget without any benefit.
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1 Reply
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Increasing your bid limit will almost definitely cause you to spend more. The effect on ctr is more indirect and thus harder to predict.
What your bid strategy is telling you is that there are more conversions out there to get but it’s hamstring right now based on your limit.
I would definitely not expect your cpc to decrease based on increasing your bid limit.
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What you do will depend a lot on how big the market is, your impression share and what you are spending per day right now.
Do you even want to spend more money? Can you afford to spend more money because you are exceeding your KPIs? If not, you can just ignore it and move on.
If your bids go up and you spend more money, which Google will love. You may see more conversions but your CPA may go up or your ROAS may go down. At some point you will hit a diminishing return where it makes little sense to spend more money.
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Switch to maximize conversions.
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check other metrics such as CTR, Top%, impression share, etc.
If you are happy with the results then you don’t need to do anything more.
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