When does improved CTR affect CPC?

From reading on this forum for the past few months I have learned that the more my CTR improves so should the cost of my PPC decrease. So I have decided to go the expensive route. I am bidding much much higher on my keywords - Im being more aggressive and as a result I am getting better placement and more traffic and eventually better... much better CTR. But at the moment the cpc hasn't decreased yet. I want to get an idea of how long I would have to stretch this for and what CTR i should aim for in order to result in decreased cpc.
Thanks.

I think that the better route would be to use your brain rather than your wallet.

A more appealing ad... an improved landing page. Dumping your wallet will not always improve the results, but it will make you broke faster.

Create a few more ads and have them rotate... that might do more for your CTR, your conversion rate and your bottom line. Spending more time on the landing page(s) might also help.

I pretty much exhausted all those suggestions you've mentioned. I am in a highly competitive industry. I was just interested in finding out how much time it would take for the cpc to drop if the CTR doubled or tripled or maybe even more. I have some ads where my CTR is 50% , i would expect such a high CTR to have some type of influence on my cpc.

That is a very high CTR... are you offering Free Beer?

well, its not for all ads and keywords. I have campaigns that are on a city-targeting scale and i guess on some cities which are smaller and less competitive its easier to reach that kind of CTR, but my cpc still kinda steep.

you crack me up!

huh?

kopykat, I read same things and I was doubtful about more ctr = less cpc

Egol's suggestion is faultless: if you improve your ctr rotating ads, you attract better targetted users.
This means you most probably improve your conversion per click and then less costs.

When people say + ctr = -cpc, people mean cpc = cost per conversion and not cost per click... is it right Egol?

The effect of CTR on your quality score (which is a factor in your CPC), is not directly based on CTR. It is normalized by position. So having a 50% CTR in position 1 and 10% in position 3 might be equally beneficial. It is therefore not to your benefit to bid extra just to get that higher CTR. If you're improving your CTR by improving your rank on the page, that doesn't actually help.

E. Reilly, Clickable.com guru

The effect of CTR on your quality score (which is a factor in your CPC), is not directly based on CTR. It is normalized by position. So having a 50% CTR in position 1 and 10% in position 3 might be equally beneficial. It is therefore not to your benefit to bid extra just to get that higher CTR. If you're improving your CTR by improving your rank on the page, that doesn't actually help.


The poster here is correct. Improving your CTR in last position is just as worthwhile as improving your CTR in first position - only a damn sight cheaper!
Google knows what CTR% is good or bad for each position and bases this accordingly. Jumping to 1st will no doubt give you a better CTR, but if it's a poor CTR for what Google thinks is for top spot - they'll punish you for it.