1. Philip@SearchBenefit.com
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    How to Decide Your Maximum Cost Per Click

    Amazingly, even AdWords professionals sometimes donít know the arithmetic that must go into determining your maximum Cost Per Click for a keyword or ad group. But setting it correctly is crucial to optimizing your campaigns. So let me spell out in simple terms how to do it.

    Basically, to set the maximum Cost Per Click (Max CPC), you need to decide what average Cost Per Click (Avg CPC) you want. Since the Max CPC puts a cap on how much you are paying per click, it in effect controls your Avg CPC. You can tweak your Max CPC to get the Avg CPC that you want.

    But what Avg CPC do you want? To determine that, you need to know to other things, namely (1) up how much you are willing to pay per conversion (Iíll assume you already know that, so I wonít get into how to calculate it) and (2) your conversion rate, CR (typically for a given keyword or ad group).

    Now, your Avg CPC = Cost Per Conv * CR; so you want to pay no more per click than the cap you set on the cost per conversion, times your conversion rate.

    And you set your Max CPC somewhat above that maximum Avg CPC that you are willing to pay. You can adjust it to result in the Avg CPC that you want.

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    • deepika31 agrees
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    how to analyze how many clicks we 'll get before building a campaign?
    Last edited by Test-ok; Jun 13th, 2014 at 01:56 AM. Reason: poor english, revised
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  5. SEO Since 97
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    Originally Posted by vijayk10
    what is the ctr hard to understand but how could we describe it easly??
    Your going to have to do better as far as English goes...or your posts maybe deleted.
    I'm assuming you meant to ask.
    What is ctr? which is click through rate, which is how many clicks stay as opposed to clicks and leave.
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  7. Contributing User
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    CTR is Click trough rate means how many times somebody click you ads ( ex if your Keyword has 100 impressions an and receives only 5 clicks then CTR is 5 %).
    for detail you can visit https://support.google.com/adwords/answer/2615875?hl=en
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    based on quality score of your keyword, relevency of your landing page, and previous performance of your keyword you can decide how much maximum cpc you can decide on that. Also in ppc what you actual pay is always less than maximum cpc.
    Last edited by Hikin Mike; Nov 10th, 2014 at 01:27 PM. Reason: Removed advertisement

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