What determines my PPC cost per click

Published by michael on

PPC or Pay Per Click advertising is a great way to get near enough instant traffic to your website. I say great, it’s probably the best however there are many pitfalls. There is no standard price per click and whilst you may want to get lots of traffic why should you pay a disproportionate amount when compared to the competition. Let’s face it, when it comes to PPC or any other marketing and advertising you need to get an ROI.

Paid search, which ever search engine and which ever format you choose is a great opportunity to showcase your business, website and products or services but to get the most out of it, both as an advertising medium and a line in the marketing budget spreadsheet you need to know who to get the most value for your money.

PPC Myths

Let’s get this settled from the start. PPC, Google Shopping, whatever you want to call it is not the quick way to success. What it is is a quick way to lose control of budgets and burn through money if it’s not fully understood.

What determines you PPC Cost per click?

There are many factors but below is an image I’ve borrowed from wordstream.com who are a market leading PPC automation platform and know what they are talking about!

Whilst this doesn’t strictly answer the question on what determines your cost per click I want to highlight whats involved in the process and show you that whilst you are you competitor may both bid 50p per auction – they can still outrank you.

So, let me break this down

  • Ad rank is a score applied to your bid, product, keyword and is essentially a scale Google uses for ranking you.
  • Quality Score – as described above, its a metric used by Google that comprises of your CTR (Click through rate), relevance and landing page.

When you combine your quality score with your suggested bid you get your ad rank. If your ad rank  is better than your competitor then you out rank them. So when you ask the question – what determines my cost per click? There are two answers

Firstly You do! You are in complete control of your cost per click – but the value you get from the cost – this is where it gets interesting.

You can bid what you want, when you want however it’s not very often a client will say “I don’t care what it costs or what return I get, i want to get number 1 all the time! Looking at your CPC in isolation is not a good strategy

Your PPC Quality Score.

Digital marketing is never a place for “throw enough shit some sticks” attitudes. You need to know where you can and can’t compete and be clever about it so let’s have a look at what drives your Quality Score

Click through Rate – this is all about advert content or pricing.

  • Does your ad content give the user an idea of what is on the page should they click through? If yes then you are ok.
  • There’s no point targeting keywords just because they are high volume if they are not relevant to your business – this will drive up the price and bounce rates.
  • If you are not competitively priced in Google Shopping then deal with that before bidding on a product

Relevance – this is THE keyword.

Not just for PPC but SEO, Emails and just about anything business related. How relevant is your advert content to the search term? How relevant is the search term to the adgroup? Relevance, relevance, relevance. If you only sell t shirts dont get involved trousers – you’ll only disappoint users and blow budgets

Landing Page – no point getting the click if your page is crap

  • Do you solve the users issue? Can you answer all questions to get the conversion?
  • Do you have stock? Are you competitively priced? If not why are you bidding?
  • Are you sending users to the right place?

It’s quite normal to create landing pages specifically for PPC so that you can target users on specific devices, or at certain times of the day or with certain promos. These all help increase the experience the user gets when they land of the page.

This is no way is the complete story when it comes to PPC and there are many other factors to consider but if you can:

  • Provide a great landing page that solves users issues/concerns
  • Create a PPC structure that ensures only relevant keywords will fire this advert
  • Drive a healthy click through rate through great ad copy and relevance

They your ad rank will be good and you are getting value for money with every click. So the moral of the story is not to ask what determines by cost per click in PPC but what drives value with every click

If you want to know more about PPC or any other digital marketing service then you can follow us on social media, sign up to our newsletter, drop us a contact form or just keep reading.

 

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Categories: PPC

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