How to Optimize Search Keywords by Intelligently Adjusting the Max CPC

Google Ads is a tough nut to crack. Sure, you can get started within minutes, but there is a whole host of factors that determine whether or not you will get any joy from the platform. One of the most instrumental factors is keyword performance optimization.

This one core aspect can potentially be the difference between success and failure with Google Ads, which makes it a critically important task for marketers to do. You can optimize your keywords in a number of ways, but the most effective methods come down to adjusting your maximum cost-per-click (max CPC) bids.

In this article, we’ll show you how to identify keywords for a max CPC increase. When you have this strategy down, you can improve your ad engagement, clickthrough rate, and conversion rate.

How Actual CPC is Calculated

In Google Ads, you can pay the bare minimum required to outrank the next person — so $0.01 will do the job. If you want to calculate the amount you need, do the following:

• Take the rank score of the person that is ranked one place behind you
• Divide their rank by your quality score
• Add $0.01

The result is your actual cost-per-click (CPC).

Therefore, every time your quality score rises, you will earn a lower CPC, which is better for your overall return on investment (ROI). For this reason, a keen focus on your quality score is an effective way of achieving low-cost pay-per-click (PPC) advertising.

4 Tips on Increasing Your Max CPC Bid

It can be an overwhelming job to manage a PPC account. The sheer number of options, metrics, and variables make it a highly-customizable platform, which offers a lot of choice, and also a lot of confusion!

With that being the case, it’s tough to know where to start when you want to perform a max CPC increase. Here are a few tips to keep you on track.

1. Start Small

Small businesses may be working with a limited budget, so there is a concern that you may squander money.

Start off small by making a little change to your bids. Wait for some results, then gauge the impact that the change made to your key metrics, such as impressions, ad rank, and CTR. Continue to make small changes and assess the results each time before making more adjustments.

2. Consider Your Competition

In theory, guessing what search terms people are using shouldn’t be too hard. However, all your competitors are employing the same tactics, so this is certainly no easy road to riches. This is especially true if your product is a common one that can be found with generic terms, like “running shoes”.

You need to discover search terms that have less competition but still attract plenty of relevant traffic. Using a mix of match types can help you optimize your keywords for a balance of reach and relevance.

3. Be Patient

Success won’t happen overnight. It takes time to rank for keywords, and if you have your eyes set on the top spots, then you need to prepare for the long haul. However, once you get your ad at the top of the first page of search results, the traffic bump will be worth the effort.

4. Strategy Matters

It’s very difficult to outrank established brands with massive budgets, so you should be smart about which keywords you choose. By creating more engaging, in-depth content, you will be able to outrank these more authoritative sites purely based on the quality of your content.

Take Care When Adjusting Your Bids

It’s possible to adjust your max CPC bid at any point during your campaign. Here are a few scenarios to keep an eye out for. You may want to change your bid in these instances:

• Your CPC is far below budget, but you want to climb the ranks in the ad display.
• You get a lot of conversions, but the profit margin is relatively low.
• You pay a high CPC rate but don’t get many conversions. It’s time to switch your bidding strategy or change out your keywords.

With the ever-evolving digital landscape in mind, you can’t rest on your laurels. Marketers must continue to respond to changes in the market so they can keep their bids optimized. Otherwise, you’ll end up overpaying for clicks.

Avoid Making Bid Adjustments Too Quickly

Sometimes Google Ads can generate immediate results, but it’s not the steadfast rule. Therefore, it’s never a good idea to react to information too quickly. A rash overhaul of your bids can do more harm than good.

Keep in mind that customers may take a few days before converting, so reacting too quickly is effectively working with incomplete data.

CPC Can Fluctuate

There are a lot of things that can influence keyword bids, including:

• Traffic
• Budgets
• Type of response
• Historic data
• Your sales funnel
• Your attribution model
• Focus on quality score
• Plus much more!

These factors and many others work together towards the campaign goals you have set in Google Ads. Your keyword bids naturally take all these factors into consideration, which makes the CPC a volatile metric that is hard to predict.

Keyword Performance Analysis Requires Smart Strategy

Managing your bids is a crucial component of any Google Ads campaign, but what many people don’t realize is that it’s not just about how much money you have.

Ultimately, your budget does not determine your success — your strategy does. By focusing on the top-performing ads and constantly monitoring Google keyword performance, you can gradually improve your budget allocation.

Knowing when to bid high, when to increase your bids, and when to drop keywords is a process that marketers must seek to master. Doing so will allow you to minimize your advertising spending and maximize ROI.

As you gather a better understanding of your target audience and discover more relevant keywords, you can soon devise a winning strategy, even on a small budget.