Why Is Your Average CPC So High and how to fix it?

If you are an online marketer, you should understand how the Average CPC being high affects your business and How To Fix a High CPC. It would help you to make your marketing journey successful.

Cost Per Click is an online advertising pricing model that advertisers pay publishers per click on their ads. Mainly, It indicates to advertisers how much they need to pay when someone clicks on their ads. Sometimes, the ( Cost Per Click) is also known as PPC( Pay Per click).

Nowadays, with more competition, the world of CPC is becoming more and more competitive. Unhappily, such high competition can make CPC very costly. That is why marketers need to keep this cost low for overall business profit.

In this guide, we will examine how to maintain a low Cost Per Click while beating a competitive edge. Along with this, we will know the Causes Of High-Cost Per Click and what are the ways to reduce them.

So let’s go ahead! But first, let’s look at the difference between actual CPC and Maximum CPC.

Average CPC Vs. Maximum CPC

Average CPC( Cost Per Click) is the ultimate amount of money that you end up paying per click that you receive. On the other hand, the Maximum Cost Per Click is the maximum amount of money that you are willing to pay for a click on your ad.

Average CPC= Total Cost Of your Clicks/ Total Number Of your Clicks

For instance, if your maximum bid is $3.00, you can still secure the topmost spot with a bid of $1.40. You will only have to pay $1.40 per click instead of $3.00.

What Are The Causes Of High Cost Per Click?

After bidding on CPC, once you have noticed your CPC is higher than your expectations, you should try to consider why it reached this point.

Knowing what makes your CPC high and how to fix it is essential to maintain the Average CPC. For this, It is better to know the factors that are responsible for a high Cost Per Click so that you can work to improve them.

So let’s explore what these factors are!

High Competition

High competition is one of the significant Reasons For High CPC. To run your ads at an Average CPC between high competition, you need to understand the tactics of auctions and the bidding of keywords.

The auctions take place each time someone searches for the keyword. Your bid alone determines the winner. The more people are bidding on a keyword, the more expensive it will be.

For example, if there is a winter season and you have a swimsuit business, there is probably not much competition for your keyword. Also, at this time, there will not be more people bidding on keywords related to swimsuits. As a result, there will be a lower CPC for this keyword.
In this highly competitive market, you can run your ads easily on 7searchppc at an average Cost Per Click.

Quality Score Of Your Keywords

The quality score of your keywords matters more while running ads on a particular keyword. It is a tactic that Google uses to rate the quality of your keyword. Apart from this, a quality score is a number that Google hands over your keyword between one and ten.

Your quality score number defines how much Google will charge you per click. If you keep an eye on the historical performance, and relevancy of your ads, landing pages, and keywords, you can improve your quality score.

Industry

This is one thing that is out of your control, though you need to know. You can get an idea of the bids of your competitors by using the Google keyword search tool. Also, you can understand what the expected CPC is for your keyword in your business.

Generally speaking, industries having higher per conversion value have a higher CPC. This is because these advertisers are willing to pay more per click given the prospected profits.

Let us explain this with an example; for a construction firm, one conversion means thousands of dollars for their business. So it makes sense for them to pay a higher Cost Per Click. On the contrary, for a candy shop owner, one conversion will hardly generate any revenue; that is why it is not suitable for him to have a higher CPC.

So we have understood what the Causes Of High-Cost Per click is. Now we will go with the strategies to fix lower CPC.

Strategies To Fix Lower Cost Per Click

There are many strategies to reduce your CPC. Here, we will discuss a few strategies that you can use to optimize your PPC campaigns and lower your CPC costs.

Long-Tail Keywords

An effective way to curtail your CPC is to bid on keywords where your competitors aren’t. Try to bid on long keywords while still being relevant.

You will be surprised to see the difference in your Cost Per Click as very few people are bidding on it. In addition to it, you will now target only the relevant customers.

Lower Bids

The best thing you can include in your ad campaign is to lower your ad position. Experiment with a position 1, 2, or 3 ranks lower than your current position. Does showing at three positions below really decrease your clicks?

If you are getting almost the same number of clicks, what is the use of remaining at a top-most position, as you may significantly decrease your Cost Per Click?

Improve the Quality Score of your Keywords

Improving the quality score of your keywords is one of the other significant ways to maintain the Average CPC of your ads. To make it possible, you can work on the relevancy of your keywords, landing page, and ad campaigns.

Conclusion

So now we are ending our blog with the hope that you are all set with tips and tricks to handle your ads with Average CPC efficiently. If you need any extra information regarding fixing the Cost Per Click, you can freely contact us at 7searchppc.

FAQs

How can I lower my Cost Per Click?

Ans. By following the below-given points, you can maintain the CPC cost of ads.

1. Use lower bids keywords
2. Use various tactics for keyword bidding
3. Improve the quality score of Google rating
4. Use long-tail keywords

How should you adjust the Cost Per Click( CPC)?

Ans. It is a very crucial question you often have in your mind. Read some points with which you can adjust your Average CPC.

1. Make your Google Ad account
2. Click on the campaign
3. Select the campaign category that you want to edit
4. Now click on Ad groups
5. Select appropriate Ad groups from the list
6. Click on CPC bid Colome
7. Enter a new amount and click save

What is the meaning of high cost per click?

Ans. CPC is the amount of money that you pay for each click on your ads on platforms such as Google ads. High CPC means you need to pay a higher amount for each click.

Is high CPC good or bad for your ads?

Ans. A high CPC is not bad if overall business profit increases with a high CPC. But, if you are earning much profit with a high CPC, it means your ad needs improvements to perform well.

Why is your Cost Per Click so high?

Ans. As we have already discussed above in the blog description, auctions, Keyword bidding, and quality score of ads determine the CPC costs. So you should try to use the proper strategies to make all thighs better.