If you plot the changes in CPC (cost per click) year on year, you’ll see a slow, but definitive upward rise. CPCs are possibly never going to fall, therefore making it important to rapidly act, lest you make budget losses. In April this year, online marketing experts began to notice exactly this – a definite rise in the CPC. Many agencies reported a spike in branded CPC (cost per click) as high as 141% in the period of 4 to 8 weeks.

Understanding The Increasing Costs Of Adwords

Here’s a Collection of Expert Insights on the Topic

First, it is important to clarify the difference between a brand keyword which is navigational in purpose (e.g. Macy’s) and a product search keyword (e.g. Levi’s 501 jeans). Google’s modification of Quality Score might be changing the way it views brand keywords, and brand owners may have to now pay more to ensure they don’t lose premium positioning. According to experts, this is simply Google attempting to generate more revenue from Adwords, as premium brands can easily budget a little more for this positioning.

Understanding The Increasing Costs Of Adwords

Understanding The Increasing Costs Of Adwords

Mobile CPCs are Rising

Google’s launch of Call-only campaigns for mobile Adwords has increased, despite brand managers using bid management algorithm to maintain CPA.

An artificial CPC Price Lower Limit Might Exist

There have been many reports of Google representatives mentioning a minimum CPC limit, below which Google does not give visibility to brands attempting to advertise on it.

Bid Management

Instead of simply using Google Keyword Planner’s recommendations, monitor bids on your own and use AdWords automated bid rules. When considering Google Adwords Experts for bid management and other aspects, Sydney businesses have turned to agencies like Think Big Online.

Monitor your Bids vs. Your Competitors

You need to set your CPC only slightly higher than your competitor – not to a maximum CPC bid. Otherwise, your competitor might overspend, forcing you to burn through your budget much faster. Also, assess the Auction Insights Report to analyze your competition’s keywords vs. yours, as well as ad text.

Also consider the Time Periods

As mentioned above, changes during the festive season are an important phenomenon to consider during the festive season. Which means you must review your time frames from last year to this one, to notice CPC and position change. This might help you realize overspending, while maintaining traffic.

Match your Keywords with Precision

The ‘shotgun approach’ isn’t going to work with keywords, considering unprecedented competition. For a sustained campaign, have a specific campaign with high level targeting, achieved with a phrase or exact match keywords. This can lead to click through from ads for searches you don’t really care for, increasing your cost. Instead, you should invest your budget on search queries that are highly specific to your product.


Your ad text needs to match your keywords, as often as possible, to improve Click Through Rates, which will reduce your CPC over time.

The Landing Page also must Deliver

Your landing page must provide relevant text blocks, to ensure page stickiness – this will ensure your customer can quickly make a decision. Improved landing page loading time also organically influences your advert, without spending money. At http://www.thinkbigonline.com/copywriter/ you can also avail quality copywriting services which can used for different ad campaigns including Google Adwords and other pay-per-click advertising platforms.