Due to long-term inflation, which is plaguing both producers and consumers, merchants are forced to expect lower profits due to constantly increasing wages and material prices. In order to remain competitive, companies invest money in advertising, but these expenses are also constantly rising.
The cost per click (CPC)
increased by 4 to 6% in the first three quarters of 2024 compared to the same period last year.
Advertisers could, of course, also increase their prices in connection with the higher.
So what can you do to keep your el salvador mobile database marketing budget from being blown away by your cost-per-click (CPC)? Use the simple tactic of CPC caps. It will offset your increasing advertising costs without unnecessarily burdening the consumer.
How does Google determine CPC rates?
Some advertisers using Google Ads’ Smart Bidding tool for PPC campaigns leave all the steps to artificial intelligence, which is not entirely good.
If the artificial intelligence 100% “knows” that a click will result in a conversion, Google can charge up to CZK 1,250 for it.
That’s quite a lot for one click, but the global internet giant knows well what companies’ habits are, so it “without a second thought” lets them pay such amounts.
Fortunately, AI is still not omniscient. So the question is not how much you pay for a click. Therefore, but what is the value of a high-value click to you.
When you have the opportunity to participate in the same auction. Get the same clicks for only 500 CZK, there is a clear improvement. With a fourfold ROAS for just 500 CZK. Therefore, you show a tenfold return rate. Which makes it clear synchronization is done via integrations that Google’s overconfidence can push click prices up to a level that is far from corresponding to the set business intention.
As shown by the analysis of several generic campaigns (non-branded), higher revenues occur whenever CPC rates are at a lower level. This makes it possible to set. Therefore, CPC limits to optimize campaign performance . While in some cases the “waste” remained below half a percent, in others up to a tenth of the budget was wasted with deeply below-average revenues.
Less can sometimes be more
By reducing and setting a reasonable CPC limit.
You will eliminate a smaller but significant part of your spending, and you may also see cpa email list better overall campaign performance. Of course, other factors can contribute to this. Therefore, but given that this happened in most of the cases studied, you should at least try to test the CPC reduction.
The CPC continues to grow advantage is that.
Therefore, you will get rid of those clicks. Therefore, for which you are disproportionately overpaying Google, and you will soon see a noticeable improvement in your ROAS .
If you’re not sure how to set your CPC correctly, leave it to the experts.
They know the right practices and techniques, such as setting CPC limits to optimize and improve account performance. Thanks to careful CPC tuning, you’ll get the most out of every penny you invest in advertising.