How to Counter Rising CPC Rates
How to Counter Rising CPC Rates

How to Counter Rising CPC Rates


Dawn Paul

May 24 2024

Understanding the world of cost-per-click (CPC) advertising is an effective way to optimize how much you spend on ads, gather data on who takes action after clicking an ad, and ensure you’re reaching a large audience. Simply defined, CPC is a way to measure how much an ad costs based on how many clicks it gets from a potential customer.

CPC is a standard tool for advertising campaigns. A business can find out its CPC by taking how much its ad campaign budget costs (e.g., $3,000) and dividing it by the number of clicks it gets ($3,000 / 9,321 clicks). In this scenario, that works out to a 32-cent advertiser “spend” per click.

Read on to learn why advertisers are seeing a CPC increase and how to adapt and protect your CPC budget.

Understanding the Rise in CPC Rates

It’s impossible to control every aspect of online advertising, especially since external factors play such a large role. However, CPC rates are experiencing a time of fluctuation, which means knowing how to adjust and adapt your bidding strategy will keep you business savvy.

1. Competition

When more businesses start advertising, competition increases and ad prices can go up. No one can control the rise in demand. Although the internet has endless space, ads need prime spots to be seen. Ads in high-visibility areas like website banners, home screens, or at the top of social media feeds are more likely to catch customers’ eyes. The best placements go to the highest-ranking ads, so you might need to bid more to stay competitive. Understanding your competition’s strategy can reveal gaps in your own, especially if their ads are performing better.

2. Keywords

Do your research on how to create a nimble keyword strategy because the best keywords drive CPC advertising. If you’re paying too much for CPC, maybe it’s time to look at how to adjust things behind the scenes. It’s best to find a balance between the right keyword and competition for that keyword. This is where plugging in long-tail keywords can help. You could also look at your Quality Score to see how your keywords are performing.

3. Algorithms

If your ad isn’t persuasive enough and isn’t getting the clicks it needs, the algorithm will respond to the inaction and create a new algorithm that reflects the ad’s low popularity. It’s impossible to know everything about algorithms changing. But you can stay up to date by reading industry research, measuring your data collection, rewriting copy, and dabbling in algorithm learning yourself.

Ways to Strategically Adapt to CPC Increases

1. Write compelling ad copy from the start. 

If customers aren’t clicking, your ad may need a do-over. Whether it’s design or content, the right content will garner clicks. You could even set up a mini usability test to hear from potential customers on why they would or would not click on your current content. Making small changes to content can offer a big return.

2. Replenish your keyword supply. 

You can use an online keyword research tool such as Keyword Tool to grow your foundational keyword supply. However you choose to adapt your keyword strategy, this is an easy action to take and gives you the chance to delve into some of the zero-party or first-party data you’ve been collecting.

3. Personalize your ads. 

If your competitor has a better Quality Score, then it’s likely that your CPC will increase. It’s also likely that your ad campaign needs some tweaks. Take another look at the ads that work and ask what makes them so special. Chances are, there’s a specific, personalized element implemented into the ‘call to action’ or the overall messaging. 

Mastering the intricacies of CPC advertising is crucial for optimizing your ad spend, gathering actionable insights on post-click behavior, and expanding your audience reach. Despite the rising CPC rates that advertisers face, there are effective strategies to navigate these cost increases. By implementing these approaches, you can protect your CPC budget and maintain a competitive edge in today’s market.

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