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When choosing a maximum cost\u2013per\u2013click (max. CPC) bid, you should consider the amount that you make from a purchase because you want to set a bid amount that’s:<\/p>\n
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based on how much your product is worth<\/strong><\/span><\/p>\n <\/p>\n 50% of how much your product is worth<\/p>\n <\/p>\n the same amount as the profit generated by your product<\/p>\n <\/p>\n the same amount as the revenue generated by your product<\/p>\n <\/p>\n Explanation:<\/p>\n <\/p>\n Do we really need to know something about AdWords to answer this question? At least even AdWords exam can be funny. Anyway, here is appropriate explication from google help center “Most people starting out in AdWords use cost-per-click (CPC) bidding to pay for each click on their ads. With this option, you set a maximum cost-per-click bid (max. CPC bid) that’s the highest amount that you’re willing to pay for a click on your ad. Set your bid by thinking about how much an ad click is worth to you.”<\/span><\/p>\n Most people starting out in AdWords use cost-per-click (CPC) bidding to pay for each click on their ads. With this option, you set a maximum cost-per-click bid (max. CPC bid) that\u2019s the highest amount that you\u2019re willing to pay for a click on your ad. Set your bid by thinking about how much an ad click is worth to you.<\/p>\n <\/p>\n Choosing the right bid is essential for your campaigns. Often finding the optimal bid for your specific business\u00a0is a long process which requires multiple tests. In other words,\u00a0there\u2019s no single recommended bid amount that works perfectly for everyone. The bid you choose will depend\u00a0on your campaign, goals, cost of keywords, location, industry, and many other factors. However,\u00a0the first thing you should consider is how much a click and your product worth. If you\u2019re selling new cars a bid of 0.10 USD will look just funny. Also, if your product is priced 1 USD, you just can\u2019t pay 2USD for a click.<\/p>\n Tip:\u00a0If you\u2019re just starting out in Google Ads, make a budget and bid amount that you\u2019re comfortable with. One of the most common mistakes I see is overspending. Usually, small businesses owners who tend to manage their accounts\u00a0themselves stop after few weeks saying that it\u2019s too expensive for them. In most cases that happens because of bad account structure, poor optimization, and not tailored bids.<\/p>\n <\/p>\n Read more here: https:\/\/support.google.com\/adwords\/answer\/2471184?hl=en<\/a><\/p>\n <\/p>\n