It stands to reason that when you’re running pay-per-click ads on Google, you want to know the price that you’re paying for those clicks. Here’s an important consideration, though: Average CPC is often not the price you’re paying for each of your clicks.
This sounds more obvious than it actually is, but average CPC is only the average of what you’re paying. There are a whole bunch of other considerations that go into the actual price you pay across each of those clicks, depending on factors like the user’s exact query, their device, their location and the time of day.
Whether it’s for brand terms — keywords that you bid on in AdWords that resemble or incorporate your brand name — or more generic keywords regarding products or services you offer, it’s important to understand some of the different factors that go into average CPC.
Know That Average CPCs Change Because The Auction Is Dynamic
If you’ve ever tried to explain how AdWords works to someone, you can attest to exactly how dynamic the auction is. There are a lot of moving pieces and plenty of reasons your averages might be shifting at any one time — including seasonality, changes in consumer behavior and competition. And that’s without considering changes to the results page or improvements to the ads quality system.
It might sound like marketing mumbo-jumbo when we say, “We’re always making improvements to ads quality so that users have a great experience when they search,” but it’s true. As a result, even for advertisers that don’t experience a lot of seasonality or competition, it’s not unusual for CPC to change over time.
Find Insight That The Average CPC Figure Can Hide
This sounds more obvious than it actually is, but average CPC is only the average of what you’re paying. There are a whole bunch of other considerations that go into the actual price you pay across each of those clicks, depending on factors like the user’s exact query, their device, their location and the time of day.
Whether it’s for brand terms — keywords that you bid on in AdWords that resemble or incorporate your brand name — or more generic keywords regarding products or services you offer, it’s important to understand some of the different factors that go into average CPC.
Know That Average CPCs Change Because The Auction Is Dynamic
If you’ve ever tried to explain how AdWords works to someone, you can attest to exactly how dynamic the auction is. There are a lot of moving pieces and plenty of reasons your averages might be shifting at any one time — including seasonality, changes in consumer behavior and competition. And that’s without considering changes to the results page or improvements to the ads quality system.
It might sound like marketing mumbo-jumbo when we say, “We’re always making improvements to ads quality so that users have a great experience when they search,” but it’s true. As a result, even for advertisers that don’t experience a lot of seasonality or competition, it’s not unusual for CPC to change over time.
Find Insight That The Average CPC Figure Can Hide
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