Adwords Display - CTR Up but so is CPC

2 replies
  • PPC/SEM
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Hi Everyone,

I own a sign shop, and have been running some Image Ads on the the Adwords Display Network, and my target area is around 10 miles around my shop.

The existing image ad I was using had a CTR of .46% and a CPC of $0.52

My new image ad has a CTR of .66% and a CPC of $0.71

The CTR is up .20%, which I believe is a good thing and proves that my new ad is working.

However my CPC is also up by $.19 which is a bad thing

Anyway, my two questions are:

1. Is this normal for an ad that has been running for 2 weeks? I would have thought that a higher CTR, would have equated to a lower CPC

2. Should I just focus on designing ads that get the highest CTR, and the CPC will ultimately take care of itself, or is there something I'm missing?
#adwords #cpc #ctr #display
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  • Profile picture of the author Cam Connor
    Originally Posted by Jake Howard View Post

    Hi Everyone,

    I own a sign shop, and have been running some Image Ads on the the Adwords Display Network, and my target area is around 10 miles around my shop.

    The existing image ad I was using had a CTR of .46% and a CPC of $0.52

    My new image ad has a CTR of .66% and a CPC of $0.71

    The CTR is up .20%, which I believe is a good thing and proves that my new ad is working.

    However my CPC is also up by $.19 which is a bad thing

    Anyway, my two questions are:

    1. Is this normal for an ad that has been running for 2 weeks? I would have thought that a higher CTR, would have equated to a lower CPC

    2. Should I just focus on designing ads that get the highest CTR, and the CPC will ultimately take care of itself, or is there something I'm missing?

    Could be a message mismatch between the 2nd ad and the LP. Some ads just get higher CTR's but don't do as well on conversions. Happens.
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  • Profile picture of the author LucidWebMarketing
    In percentage terms, your CTR increased 43% while your CPC increased only 36%. In other words, you got more traffic for less cost per visitor. That's a bet I'll make almost every time.


    I'm assuming you have a mathematically significant amount of data for each ad. Sounds like you were running each ad individually and that could be a bit of a problem. The conditions may not have been the same for each which makes it harder to compare the true value of each ad. Run the ads concurrently and see what happens.


    There are many things in play so a higher CTR does not mean a lower CPC. And you are talking display here, not search, which is vastly different. There is also the way you set up this display campaign. But I would take a look at Relative CTR (it should be up and your second ad but maybe not where it would affect CPC much) and impression share. Relative CTR is display's QS. Stats of where your ads were shown can also be revealing.
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