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What is a good average CPC amount to invest ?

by Itachi
3 replies
  • PPC/SEM
    • |
Just wondering what is the average cost per click you're paying for, and how are low CPC cost campaigns doing, also high.. I guess for high priced products.
#amount #average #cpc #good #invest
  • Profile picture of the author solarwarrior
    Originally Posted by Itachi View Post

    Just wondering what is the average cost per click you're paying for, and how are low CPC cost campaigns doing, also high.. I guess for high priced products.
    Focus on metrics that matters.
    CTR, Conversion, EPC.

    Once you get them right, CPC doesn't matter at all.
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    • Profile picture of the author dburk
      Hi Itachi,

      Looking at averages of your own aggregate data is nearly worthless. Looking at averages from unrelated aggregate data is completely worthless. Everyone's CPC will be different for a variety of reasons and what is a good CPC for one, is often a poor CPC for another.

      What matters is the value per click, because without that your CPC is just some random meaningless number. If your Value per click is $6.00, then a $5.75 CPC is a profitable one. However, if your value per click is $0.02 then a $0.03 CPC is an expensive one.

      Value per click will be different for each niche, website, offer, landing page, keyword, ad creative, audience segment, it will vary based on time of day, day of week, and month of year. Heck even the local weather will often have an effect on the conversion rates.

      The bottom line is that context matters, a CPC statistic is completely meaningless until you place it into context with a particular landing page, ad creative, and audience segment, for a particular time frame, otherwise it i just a completely meaningless random number.
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  • Profile picture of the author CreativeWest
    Use this for a reference https://www.custora.com/pulse, you can work it out yourself. Let's say you have a $2 CPC and a 2.5% conversion with PPC being 100% of your marketing. That means you spend $80 per order CPA however marketing on average is 8% of revenue, so you need a CLV of $1,000. In the real world however startup site conversion will be ~1% with 16% of 8% on marketing via Pulse on CPC so your CLV needs to be $15k.
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