How To Determine Maximum CPC In Google Ads

Whether you’re a know-how Google Ads advertiser or someone wanting more power over your Google Ads account, think about fixing a maximum CPC for your keyword groups and keywords. 

Google Ads provides automatic bidding for anyone interested in setting their CPC amounts by hand. However, if you’re up for determining your maximum CPC in Google Ads, check out these steps to prepare your maximum CPC:

4 Tips For Optimizing Google Ads Maximum CPC

Decide Your Preferred Profit Margin For Each Equivalent Sale

For every keyword group or keyword, ascertain your preferred profit margin for every corresponding sale of a sales lead. For example, if you’re selling watercolour artwork on your website, work out the amount you’ll make per piece. Perhaps you’re looking at £20 per picture.

Ascertain How Much You’ll Spend On Every Conversion 

Figure out how much you want to spend on every conversion corresponding to a specific keyword group or keyword. We recommend fixing this amount to make it equivalent to your preferred profit margin. So, for each painting, you’ll probably spend around £20 per conversion. 

Fix Your Costs Accordingly 

Take into account your preferred maximum cost per conversion, profit margin, and other cost amounts to figure out your product prices. Perhaps you made the picture yourself, then only had to spend £20 per watercolour painting for supplies. Maybe electricity studio costs were around the £10 mark per picture. Take into account the £20 profit margin and the £20 maximum cost per conversion, and you’ll sell your artwork for £70, respectively.

Determine Your Conversion Rate For Relevant Keywords

If you’ve been selling services or products for several years now, it won’t be too tricky to ascertain this figure. Take a look at your metrics history. You may notice that roughly 2% of clicks brought about conversions, meaning this is the sum you need. But if you’re new to selling, try a 1% conversion rate as a yardstick.

Written by Uzair Kharawala

Founder of SF Digital Studios, a Google Premier Partner agency. Uzair has been helping businesses grow with Google Ads since 2002 and teaches it every week on YouTube.