High CPC
Average cost per click has gone up versus last period, last year, or what the plan assumed.
What you see
- Avg. CPC up 15%+ week on week, or 25%+ month on month, with no planned change
- The same budget buys fewer clicks, so traffic drops even though spend is flat
- Campaigns start showing as Budget-Limited Campaigns
Is it actually a problem?
Not on its own. CPC is the price you pay; what matters is what you get for it. Before touching anything, run Is High CPC Actually a Problem.
Likely causes
- Auction pressure: New Competitor in Auction, Rising Competitor Overlap, Competitors Bidding on Brand, Seasonal Auction Peaks
- Quality: Low Quality Score
- Bidding and match type: Loose Smart Bidding Targets, Top-of-Page Target IS Bidding, Broad Match Query Expansion, Low Conversion Volume
- Mix: Spend Mix Shift
Diagnose with (in this order)
- Is High CPC Actually a Problem: confirm it matters
- Change History Review: did we cause it?
- Auction Insights: did they cause it?
- Quality Score Component History: did Google start rating us lower?
- Search Terms Report: are we buying different queries now?
- Segment by Device Location and Hour: is it one segment?
- Impression Share Lost to Rank: are we losing auctions we used to win?
Leads vs revenue
- Lead gen: judge CPC against cost per qualified lead from the CRM, not cost per form fill.
- Revenue: judge against ROAS or profit. Higher CPCs on high-AOV products can be fine.
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