What Is a Good Cost per Click? [Formulas & Tips]

A bully costs per click (CPC) is 1 that allows you to execute your target extremity for a fixed advertisement campaign. 

If you want to make sales, your perfect costs per click mostly depends connected nan return connected finance (ROI) you’re aiming for.

And you tin find what a bully CPC is (meaning nan maximum it should be) for that script pinch this formula:​

• Average waste value: The mean magnitude that a customer spends
• Conversion rate: The information of clicks expected to make sales, expressed arsenic a decimal
• Target ROI: The return connected finance you want to generate, expressed arsenic a decimal

Let’s opportunity your mean waste worth is $25, your humanities conversion complaint is 3%, and your target ROI is 400%. 

That intends a bully CPC is ((25 x 0.03) / (1 + 4) =) $0.15. So, each 100 clicks should costs $15 and make $75 successful revenue.

What’s a bully CPC if you want to make leads?

Use this formula:

• Target CPA: The magnitude you’re consenting to salary for each lead generated
• Conversion rate: The information of clicks expected to make leads, expressed arsenic a decimal

If you’re consenting to salary $60 per lead and your humanities conversion complaint is 2%, that intends a bully CPC is (60 x 0.02 =) $1.20. So, each 100 clicks should costs $120 and make 2 leads.

What Affects Your CPC?

With Google Ads, your existent CPC depends connected a fewer factors. It mostly comes down to a people that Google assigns to your ads and really you stack up against nan competition.

More specifically, it depends on:

• How your Ad Rank compares: Ad Rank is simply a people assigned to your ads to find whether they’ll show and where. It’s based connected things for illustration nan magnitude you bid, nan value of your ads and landing page, etc. And allows for a clear comparison against your competitors.
• What’s needed to meet nan Ad Rank thresholds: An Ad Rank period is nan minimum Ad Rank you request to meet for your ads to show. It’s meant to guarantee definite value standards. 

Basically, Google charges nan minimum CPC required to meet nan Ad Rank period and hit nan adjacent champion competitor’s Ad Rank. 

Let’s opportunity these are nan only 2 advertisers that meet nan Ad Rank period of 30:

Advertiser	Ad Rank
A	48
B	35

Advertiser A will salary an existent CPC that’s conscionable capable to hit Advertiser B. And Advertiser B will salary an existent CPC that’s conscionable capable to hit nan Ad Rank threshold.

And it’s worthy knowing that nan pursuing types of keywords person higher CPCs. Because they thin to pull much advertisers and/or higher bids:

• Buyer keywords: Terms searchers usage erstwhile they’re fresh to convert
• High-volume keywords: Popular position that get tons of searches
• High-value keywords: Terms that person nan imaginable to make tons of gross (e.g., those relating to costly products aliases services pinch a precocious customer life value)
• Broad keywords: Terms that are applicable to tons of businesses

You tin find keywords that are some applicable and affordable pinch Semrush’s Keyword Magic Tool.

Enter a word related to nan run you’re planning, take your target country, past click “Search.”

The instrumentality will coming keywords that incorporate your starting word aliases a adjacent variation. And nan mean CPC for each (in nan rate selected astatine nan top).

To attraction connected keywords that trigger advertisement results:

1. Go to “Advanced filters” > “SERP Features”
2. Check nan boxes alongside “Shopping ads,” “Ads top” and/or “Ads bottom” (depending connected your goals)
3. Click “Apply”

And see utilizing different filters and sorting options to find nan champion PPC keywords. Like evaluating only position pinch commercialized hunt intent (terms that bespeak nan personification is researching options earlier buying) aliases pinch transactional intent (terms that bespeak nan personification is willing successful making a purchase.)

How to Achieve a Good CPC

These tips tin thief you execute a bully CPC connected early advertisement campaigns. And walk your advertizing fund much effectively.

1. Know What Number Can Protect Your Profit Margins

If you allocate a circumstantial information of your profit separator toward advertising, you tin understand what it takes to execute maturation without overspending.

What’s a bully costs per click pinch this method? 

Use this look to find out:

• Profit per conversion: The magnitude you typically make from a sale
• Profit allocated to advertising: The information of profits you’re consenting to walk connected ads
• Conversion rate: The information of clicks expected to make sales

Let’s opportunity you’re consenting to allocate 20% of your profit to advertizing and that you make $90 successful profit per sale. Given a conversion complaint of 1%, you tin spend to walk up to ($90 x 0.2 x 0.01 =) $0.18 per click.

If your CPC is immoderate higher, it’ll apt eat into your profits more.

2. Research Your Competitors

Research your competitors to spot what keywords they bid connected and really overmuch they salary per click. So you tin stitchery insights for your ain advertizing strategy.

To get started, participate a competitor’s domain successful nan Advertising Research tool.

Then, take your state and click “Search”

Scroll down to nan “Paid Search Positions” array to spot keywords that triggered your competitor’s ads. Alongside their mean CPC (in nan rate selected astatine nan top) for each term.

Here, we tin spot that eBay paid astir $0.46 per click connected their “ebay motors” ad:

Use nan “Advanced filters” paper to attraction connected keywords successful a peculiar CPC range. Ideally, 1 that aligns pinch nan costs you wished successful nan past step.

And click nan CPC file header to benignant results from debased to precocious aliases precocious to low.

3. Improve Your Quality Scores

A higher Quality Score (a metric Google assigns to your ads to thief you measure their quality) is simply a bully denotation you’ll beryllium capable to rank successful higher positions and salary a little CPC.

Here are immoderate speedy tips for improving your Quality Score:

• Choose nan correct target keywords, negative keywords, and keyword lucifer types to guarantee your ads only show for applicable terms
• Write clear, compelling, and applicable ad copy
• Make judge your run landing page is optimized for users and conversions
• Use A/B testing to trial different versions of your ads and landing pages

You tin get inspiration from your competitors pinch nan Advertising Research tool.

Go to nan “Ads Copies” study to:

• See nan matter your chosen rival utilized successful their ads
• Discover keywords that triggered each ad
• Click done to their run landing pages

Once your run is running, way your advertisement capacity to guarantee you really are achieving a bully CPC.

In different words, find out:

• How overmuch you’re spending connected ads
• How galore clicks you’re getting 
• How galore clicks make conversions
• How overmuch gross these conversions generate
• How overmuch profit these conversions generate

Then, comparison these numbers against your baselines and goals. To spot if your calculations request to beryllium adjusted.

For example, if it turns retired that your conversion complaint is 2% alternatively than 1%, you tin astir apt spend to summation your maximum CPC.

Also, usage Semrush’s Position Tracking instrumentality to way your advertisement rankings.

If your ads don’t rank arsenic precocious arsenic you’d like—or driblet to little positions—you mightiness want to summation your maximum CPC. Or find different keywords to target.

Maximize Your PPC ROI

With Semrush tools, it’s easier to execute a bully CPC. And maximize your ROI.

Sign up free to effort devices like:

• Keyword Magic Tool: Discover nan champion PPC keywords for your campaigns 
• Advertising Research: Get penetration into your rivals’ PPC strategies
• Position Tracking: Monitor your integrated and paid rankings successful Google