How does conversion optimiser calculate cpc

Be sure to study all attribution models to choose the one that ties in with your goals and gives you an accurate picture of all advertising efforts. Engineering a successful pay-per-click campaign is a challenging task, which requires a lot of fine-tuning and planning. The best way to optimize it is to work top-down on your account structure calibrating the three most important elements shared by all successful paid search campaigns:.

Keywords only relevant for AdWords campaigns. As a foundation of your pay-per-click campaign, keywords will be your primary concern. Use negative keywords and ensure your campaign is not built on broad match keywords to avoid attracting shoppers with the wrong intent. Note that paid social media ads are not based on keywords. Demographic information and interests take the central stage in these campaigns. Ad copy. To write a high-performing ad text copy, you must think about the three essential components: features, benefits and a call to action.

Consumers are searching online to solve problems, not to buy products or services, therefore focusing on the benefits first is key. This means you can bid higher or lower depending on the intent of the keyword and its value to your business. The CPC is the actual price that you pay for these clicks based on the keywords that you are bidding on.

How much you pay for clicks impacts a number of different areas of your campaign's performance, including:. Running a successful campaign is all about driving the highest ROI without missing out on opportunities for sales or leads. Set your bids too low and your ads aren't shown frequently enough or they aren't driving conversions.

Set your bids too high and you will impact the profitability of your campaign. One thing that is important to note is that the max cost per click that you set for a keyword isn't the same as the final price that you pay. In fact, you only pay the minimum amount to clear the Ad Rank thresholds and beat the Ad Rank of the competitor immediately below you.

But let's clear up some confusion. And in this guide, we will go over how you can work to reduce your cost per click and optimize your ads. When you are in the process of building out a PPC campaign, you want to be able to set your daily or monthly budgets and estimate how much your CPC will be across the keywords you are going to bid on. Enter your desired keyword and you will be presented with your keyword and a list of related keyword variations.

You can also see the average CPC that advertisers pay when a user clicks on their ad. In this example, we are looking at how much it will cost for a click on an exact match keyword of [LA Lakers Jersey]. SEMrush Keyword Magic tool. Another alternative is to use the CPC Map to gain a location-based or industry-specific average as to how much the average PPC click costs.

This can be useful when trying to determine an approach to geo-targeting that could help you improve your campaign's ROAS.

You can also gain insights into how much your competitors are paying per click by using the Advertising Research tool. You can enter any domain and receive results that indicate what their average CPC is across different keywords, understand their bidding strategy, and determine which keywords are likely to be profitable. Historically, advertisers have had full control over the maximum CPC that they pay for ads and most campaigns were set up using a 'manual CPC' bidding strategy.

We now see many types of different bidding strategies. These are just some of the more common ones, to name a few:. You can learn more about the different bidding strategies here. It is important to know that you are no longer tied to only manual bidding and that there are a number of alternatives to help you to optimize your campaign costs.

Given that Quality Score directly impacts the actual CPC you pay, it makes sense to place your focus on this when looking to improve your campaign's performance. It is also important to know what Quality Score is, how it is calculated, and the factors that influence it. According to Google :. Quality Score is an estimate of the quality of your ads, keywords and landing pages.

Higher quality ads can lead to lower prices and better ad positions. The Quality Score is reported on a scale and includes expected click-through rate, ad relevance and landing page experience. The more relevant your ads and landing pages are to the user, the more likely it is that you'll see higher Quality Scores.

Exit Rate vs Bounce Rate. Joydeep Bhattacharya is a digital marketing evangelist who has over 11 years of experience in online marketing. He helps businesses improve their revenue online. Prev Article Next Article. Both enhanced CPC and Conversion Optimizer are tools that helps to get more conversions from your adwords campaign.