Not checking this could be hurting your accounts! (The optimisation not many speak about...) Google's CPCs are getting out of hand. I think the PPC community can universally agree on at least that much! But one optimisation I haven't seen many people post about is your product CPCs. We've seen Search CPCs increase by as much as 3x in as little as a year! But what about Shopping CPCs? Below is a screenshot of one of my PMax feed-only campaigns. The product prices are all under $100. But my CPCs are as high as 76% of the product price!!! Now I'm not tooooo fussed about high CPCs, as long as the conversions follow. However, in this case, this hasn't happened. In fact, my top 3 highest CPCs didn't convert. So what should you do? ✅ Check the 'Product' section. ✅ Sort your Avg CPC from highest to lowest. ✅ Pause products if CPCs are too high. I've especially found this to be true in PMax campaigns. I've found super high CPCs in almost all my e-comm accounts. So I recommend you check yours too!
Google uses the minimum bid to win an auction. I believe when Google only has Smart bidding to work with in an auction, they use a mix out of predicted conversion probability, and predicted conversion value to get maximum cpc value possible. If no one in the auction has a CPC of 0.01€ then no one becomes the minimum that needs to be overcome. If that happens the maximum each competing campaign is willing to accept becomes the minimum that needs to be overcome. Thus creating ridiculous CPCs. If 2 Campaigns running on TROAS bid in an auction, and Google predicts the conversion rate of the click to be 100% and one campaign would accept a cpc of 90€ for this click to stay within the TROAS bounds, then the other campaign needs to outbid that.
Yes!!! A quick review could save you big
But how many clicks do these products generate? (anyways, 30€ cpc is insane)
Someone needs to hire this guy before it's too late
CPC campaigns never fails to amaze me! I'll definately check this fact from now on. Thanks for sharing this gem. Brent 💙
→ Profitably scaling 7 figure Businesses with Google Ads (+8yrs) 📈 - Working on a performance basis: I only grow if you do
2moBack to manual CPC I guess 👀 Brent Neale