What is Cost Per Click?
TL;DR
The actual amount you pay when someone clicks your ad. CPC varies dramatically by industry, legal keywords can cost $50+ per click while others cost pennies. Lower CPC through better Quality Score, refined targeting, and improved ad relevance. Track CPC alongside Cost Per Acquisition to understand true campaign value.
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Frequently Asked Questions About Cost Per Click
What's a good CPC for my industry?
It varies wildly. Legal, insurance, and finance average $50+ per click. Local services might be $5-20. Retail can be under $1. Research your specific industry and keywords using Google's Keyword Planner for realistic expectations.
How can I lower my CPC?
Improve Quality Score (relevance, landing page, expected CTR), use more specific long-tail keywords, refine targeting to reduce competition, improve ad copy, add negative keywords to avoid irrelevant clicks, and test different match types.
Is lower CPC always better?
Not necessarily. A $2 click that converts at 10% is better than a $0.50 click that converts at 1%. Focus on cost per acquisition (CPA) and return on ad spend (ROAS), not just CPC. Cheap clicks that don't convert waste money.
Why did my CPC suddenly increase?
Common causes: new competitors, seasonal demand increases, Quality Score drops, market changes, or Google algorithm updates. Review your Quality Score components and check if competitors have entered your market.
What's the difference between CPC and maximum bid?
Your maximum bid is the most you're willing to pay. Your actual CPC is what you actually pay, often lower than your max bid. Google charges just enough to beat the next advertiser's ad rank, not your full max bid.
Terms Related to Cost Per Click
Cost Per Acquisition
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