Adwords Fundamentals

When choosing a maximum cost-per-click (max. CPC) bid, you should consider the amount that you make from a purchase because you want to set a bid amount that’s:

When choosing a maximum cost-per-click (max. CPC) bid, you should consider the amount that you make from a purchase because you want to set a bid amount that’s:

  • based on how much your product is worth
  • 50% of how much your product is worth
  • the same amount as the profit generated by your product
  • the same amount as the revenue generated by your product

The correct answer is:

  • based on how much your product is worth

Explanation: First things first: there’s no single recommended bid amount that works perfectly for everyone. The right bid for you will depend on:

  • Your campaign type
  • The cost of your keywords
  • The success of your keywords

Most people starting out in Google Ads use cost-per-click (CPC) bidding to pay for each click on their ads. With this option, you set a maximum cost per click  (max. CPC bid) that’s the highest amount that you’re willing to pay for a click on your ad.

Set your bid by thinking about how much an ad click is worth to you. If you’re unsure what bid to start with, try setting a max. CPC bid of US$1.

Example:

Let’s say you own a skateboard shop and you make US$10 from every skateboard purchase. You’ve seen that on average, 1 in 10 visits to your website results in a purchase. If you set a max. CPC bid of US$1, you’ll break even (advertising costs = sales). To make a profit, you should spend less than US$1 to get a click on your ad, which means you’ll want to set your max. CPC bid below US$1.

More readd: https://support.google.com/google-ads/answer/2471184?hl=en

Ali Raza

Ali Raza is a Web Developer and Digital Marketing Consultant.

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