How to Choose Max CPC

Hello all, can any one suggest me how do i set Max CPC for my adwords campaign.....Im selling a product worth 200 and what should be my max cpc.....thank you.

 

Hello aceofadsense,

This can depend on a number of factors. It is always good to start with a foundation of a worst case scenario which typically can be 1:100 conversion ratio.

Simple math will dictate that if you are selling a product for $60 you would want to start your campaign at "worst case"... so....

1:100

would mean

$60 spent on adwords for every 1 sale would break even. so for every 100 clicks you cant spend more than $60 -- which means your cost per click cant be over $0.60

HOWEVER

This is assuming that your ads and keywords are targeted for the product you are selling.

I have seen "worse case" scenarios far greater than 1:100 (more like 1:800)

So theoretically you can spend $2.00/click and under in order to break even or make a profit

But TECHNICALLY you would want to test this out and see how well your product converts, assuming worst case is 1:100 you can end up with actual conversions at 1:50 or even 1:30 and can pay more per click <-- but that comes back to testing

I had a friend once who was selling a $170 product and was getting conversions at 1:38 but refused to pay $2/click out of principle -- even though he was paying around $80 in order to get $170

 

thanks a lot unknown, i would definitely consider your suggestions....and i would also appreciate any other suggestions from other members......thank you.

 

More Worst case scenarios 1:1000 , witnessed

Be careful be contextual advertisements.

 

will take care...lets c how i end up.....

 

I would also like to add that you should make sure you are laser targeted with your ad and keywords because of the effect running "bad" campaigns has on your account history..

You want to be 120% relevant and have high CTR in order to get cheap clicks. If after a while you end up with poor account history, it will be very hard to get back to good standing with google..

Believe you me, I had this one account that I ran into the ground while I was learning PPC.. I had $100 left in the account and it was so bad that I couldn't even run a suicide campaign at $20/click

 

Ooops double post

 

Nice and helpful idea thanks 03

 

Not necessarily, the more relevant you are the higher quality score you get. The higher quality score you get, the better your ad placement is (1st page) --> the higher your quality score, the cheaper your clicks

On the flip side, if you have lots of impressions and no one clicks through, the less relevant google see's you and will start to charge you more money by lowering your quality score, and the worse your account history gets

 

Test it out with smaller cpc first. See the conversion and then go for high budget

 

yap i did and i lost $100 in a day

 

Watch a lot of the article, more and found that before the awd operation must be a good look at the experience of others!

 

thanks a lot for all the suggestions......i hope i start good with my campaign......thank you all..