What Is a Good Cost per Click? [Formulas & Tips]

A bully outgo per click (CPC) is 1 that allows you to execute your people extremity for a fixed advertisement campaign. 

If you privation to make sales, your perfect outgo per click mostly depends connected the instrumentality connected concern (ROI) you’re aiming for.

And you tin find what a bully CPC is (meaning the maximum it should be) for that script with this formula:​

• Average merchantability value: The mean magnitude that a lawsuit spends
• Conversion rate: The information of clicks expected to make sales, expressed arsenic a decimal
• Target ROI: The instrumentality connected concern you privation to generate, expressed arsenic a decimal

Let’s accidental your mean merchantability worth is $25, your humanities conversion complaint is 3%, and your people ROI is 400%. 

That means a bully CPC is ((25 x 0.03) / (1 + 4) =) $0.15. So, each 100 clicks should outgo $15 and make $75 successful revenue.

What’s a bully CPC if you privation to make leads?

Use this formula:

• Target CPA: The magnitude you’re consenting to wage for each pb generated
• Conversion rate: The information of clicks expected to make leads, expressed arsenic a decimal

If you’re consenting to wage $60 per pb and your humanities conversion complaint is 2%, that means a bully CPC is (60 x 0.02 =) $1.20. So, each 100 clicks should outgo $120 and make 2 leads.

What Affects Your CPC?

With Google Ads, your existent CPC depends connected a fewer factors. It mostly comes down to a people that Google assigns to your ads and however you stack up against the competition.

More specifically, it depends on:

• How your Ad Rank compares: Ad Rank is simply a people assigned to your ads to find whether they’ll amusement and where. It’s based connected things similar the magnitude you bid, the prime of your ads and landing page, etc. And allows for a wide examination against your competitors.
• What’s needed to conscionable the Ad Rank thresholds: An Ad Rank threshold is the minimum Ad Rank you request to conscionable for your ads to show. It’s meant to guarantee definite prime standards. 

Basically, Google charges the minimum CPC required to conscionable the Ad Rank threshold and bushed the adjacent champion competitor’s Ad Rank. 

Let’s accidental these are the lone 2 advertisers that conscionable the Ad Rank threshold of 30:

Advertiser A volition wage an existent CPC that’s conscionable capable to bushed Advertiser B. And Advertiser B volition wage an existent CPC that’s conscionable capable to bushed the Ad Rank threshold.

And it’s worthy knowing that the pursuing types of keywords person higher CPCs. Because they thin to pull much advertisers and/or higher bids:

• Buyer keywords: Terms searchers usage erstwhile they’re acceptable to convert
• High-volume keywords: Popular presumption that get tons of searches
• High-value keywords: Terms that person the imaginable to make tons of gross (e.g., those relating to costly products oregon services with a precocious lawsuit beingness value)
• Broad keywords: Terms that are applicable to tons of businesses

You tin find keywords that are some applicable and affordable with Semrush’s Keyword Magic Tool.

Enter a word related to the run you’re planning, take your people country, past click “Search.”

The instrumentality volition contiguous keywords that incorporate your starting word oregon a adjacent variation. And the mean CPC for each (in the currency selected astatine the top).

To absorption connected keywords that trigger advertisement results:

1. Go to “Advanced filters” > “SERP Features”
2. Check the boxes alongside “Shopping ads,” “Ads top” and/or “Ads bottom” (depending connected your goals)
3. Click “Apply”

And see utilizing different filters and sorting options to find the champion PPC keywords. Like evaluating lone presumption with commercialized hunt intent (terms that bespeak the idiosyncratic is researching options earlier buying) oregon with transactional intent (terms that bespeak the idiosyncratic is funny successful making a purchase.)

How to Achieve a Good CPC

These tips tin assistance you execute a bully CPC connected aboriginal advertisement campaigns. And walk your advertizing fund much effectively.

1. Know What Number Can Protect Your Profit Margins

If you allocate a circumstantial information of your nett borderline toward advertising, you tin recognize what it takes to execute maturation without overspending.

What’s a bully outgo per click with this method? 

Use this look to find out:

• Profit per conversion: The magnitude you typically marque from a sale
• Profit allocated to advertising: The information of profits you’re consenting to walk connected ads
• Conversion rate: The information of clicks expected to make sales

Let’s accidental you’re consenting to allocate 20% of your nett to advertizing and that you marque $90 successful nett per sale. Given a conversion complaint of 1%, you tin spend to walk up to ($90 x 0.2 x 0.01 =) $0.18 per click.

If your CPC is immoderate higher, it’ll apt devour into your profits more.

2. Research Your Competitors

Research your competitors to spot what keywords they bid connected and however overmuch they wage per click. So you tin stitchery insights for your ain advertizing strategy.

To get started, participate a competitor’s domain successful the Advertising Research tool.

Then, take your state and click “Search”

Scroll down to the “Paid Search Positions” array to spot keywords that triggered your competitor’s ads. Alongside their mean CPC (in the currency selected astatine the top) for each term.

Here, we tin spot that eBay paid astir $0.46 per click connected their “ebay motors” ad:

Use the “Advanced filters” paper to absorption connected keywords successful a peculiar CPC range. Ideally, 1 that aligns with the outgo you determined successful the past step.

And click the CPC file header to benignant results from debased to precocious oregon precocious to low.

3. Improve Your Quality Scores

A higher Quality Score (a metric Google assigns to your ads to assistance you measure their quality) is simply a bully denotation you’ll beryllium capable to fertile successful higher positions and wage a little CPC.

Here are immoderate speedy tips for improving your Quality Score:

• Choose the close people keywords, negative keywords, and keyword lucifer types to guarantee your ads lone amusement for applicable terms
• Write clear, compelling, and applicable ad copy
• Make definite your run landing page is optimized for users and conversions
• Use A/B testing to trial antithetic versions of your ads and landing pages

You tin get inspiration from your competitors with the Advertising Research tool.

Go to the “Ads Copies” study to:

• See the substance your chosen rival utilized successful their ads
• Discover keywords that triggered each ad
• Click done to their run landing pages

Once your run is running, way your advertisement show to guarantee you truly are achieving a bully CPC.

In different words, find out:

• How overmuch you’re spending connected ads
• How galore clicks you’re getting 
• How galore clicks make conversions
• How overmuch gross these conversions generate
• How overmuch nett these conversions generate

Then, comparison these numbers against your baselines and goals. To spot if your calculations request to beryllium adjusted.

For example, if it turns retired that your conversion complaint is 2% alternatively than 1%, you tin astir apt spend to summation your maximum CPC.

Also, usage Semrush’s Position Tracking instrumentality to way your advertisement rankings.

If your ads don’t fertile arsenic precocious arsenic you’d like—or driblet to little positions—you mightiness privation to summation your maximum CPC. Or find antithetic keywords to target.

Maximize Your PPC ROI

With Semrush tools, it’s easier to execute a bully CPC. And maximize your ROI.

Sign up escaped to effort tools like:

• Keyword Magic Tool: Discover the champion PPC keywords for your campaigns 
• Advertising Research: Get penetration into your rivals’ PPC strategies
• Position Tracking: Monitor your integrated and paid rankings successful Google