The cost of a click depends on your maximum bid, your quality score, and the competition for the keyword you are using. It is crucial to regularly monitor your CPC because costs can add up quickly without giving you the return you are looking for. When you are overpaying, you will soon run out of marketing budget with no return, and worst case, no valuable insights. Keep in mind that what you are looking for are not cheap clicks but affordable traffic with a reasonable conversion rate. Therefore, your success is determined by how much you pay for a click as well as the traffic quality (people who click on the ad).
No matter which pricing model you choose, always track your campaigns to see which design and messaging work best. Test, remove the losers and focus on the winners.
How to calculate CPC
Average cost-per-click = Total cost of your clicks / Total number of clicks.
For example, if you get 2 clicks on your ad, one costs €1 and the other costs €3, the total costs are €4. Now you divide the total cost €4 by the number of clicks and get an average cost-per-click of €2. (€4 / 2 clicks = €2)
How to improve CPC
• Chose a niche topic, rather than high competitive keywords
• Use negative Keywords
• Test different ad positions
• Lower your bids
• Adjust bids by devices or locations