An advertiser looking to drive conversions is using manual cost–per–click (CPC) bidding. Which factor should be most important for this advertiser when deciding keyword bids?
- The profit derived from a paid click
- The bids of the next closest advertiser
- The average profit per conversion
- The Quality Score of the keyword
An advertiser looking to drive conversions is using manual cost–per–click (CPC) bidding. Which factor should be most important for this advertiser when deciding keyword bids
Conversion in given situation is a “goal”. And click doesn’t mean conversion. As an advertiser is using CPC bidding the main factor should be a value (profit) of paid click.
How do you know what CPC to set? You can figure this out based on what you know about your business and the value of a sale. For example, if you sell US$5,000 diamond rings, one new customer is probably worth more than if you sell US$0.99 packs of gum.
Once you’ve set max. CPC amounts that you’re comfortable with, see how many clicks your ads begin to accrue, and whether those clicks lead to business results on your website. Also, remember that Internet traffic is always changing, so it’s important to re-evaluate your CPC bids regularly.
Read more here: https://support.google.com/adwords/answer/2464960?hl=en
With Manual Cost-Per-Click (CPC) bidding, you can set a maximum price on the cost of someone clicking on your AdWords ads. You can get good value with this bidding method because you pay only when a viewer is interested enough to click your ad and learn more.
Think about billboards: Advertisers pay for billboard space based on how many people might see their ad as they drive by, whether those people actually notice the ad or not.
Internet ads are different: With AdWords CPC bidding, you only pay for Google’s “billboard space” when you know users saw your ad and were motivated enough to click. If 100 people view your ad and three click it, you pay for the 3 clicks, not for the other 97 views.
How CPC bidding works
For CPC bidding campaigns, you set a maximum cost-per-click bid – or simply “max. CPC” – that’s the highest amount that you’re willing to pay for a click on your ad (unless you’re setting bid adjustments, or using Enhanced CPC).