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Can't get my CPC to decrease

by tayyab123
3 replies
  • PPC/SEM
    • |
I've got a CTR of 2% on one ad but it's CPC can't get any lower than $0.60-$0.70. I have split tested and chose one top performing ad with is this but still it's not decreasing. My daily spending budget is $10 and the ad has been running for 4 days and this is the 5th day. Please help.
#cpc #decrease
  • Profile picture of the author deepCode
    For some keywords, there is simply a minimum CPC that the market determines.

    If there are 100 ad-spaces, and there are people willing to buy each of them for 0.50$, you wont get down below 0.50$ if you pay per click.

    If you chose a CPM Model, try to increase CTR using A/B Testing. However, 10$ is pretty small budget to get meaningfull numbers for that.
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  • Profile picture of the author Bright Future
    Hi, tayyab123

    I'm not sure if you're aware that bidding also impacts your CPC. If you lower your max CPC bid, then you pay less per click. However, considering that you have a CTR of 2%, your ads probably don't appear in top positions most of the time and by bidding even less you might risk falling off from the first page.

    And deepCode is right - If it's a high competition niche then $0.60-$0.70 could be the approximate minimum amount you need to pay per click to stay on the first page. Of course, it depends on your quality scores. If they are lower than 7 for most of the keywords then you probably have some room for improvement.
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  • Profile picture of the author LucidWebMarketing
    PPC is an auction. You are competing with other advertisers. So it's a market driven process. If the market is willing to pay $1 per click, it will be next to impossible to pay $0.50. So what is the market in this niche willing to pay?

    Next, you have to have high quality ads. The higher quality score you have, the better. It will allow you to better compete with others with high QS. Many (probably most) of them will be bidding what the market determines so you have to do the same. It's not the CPC that's important, it's what you do when those clicks get on your page. It doesn't matter if you pay $1 or $2 or even ten cents if nobody buys from you.
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