An advertiser looking to drive conversions is using manual cost–per–click (CPC) bidding. Which factor should be most important for this advertiser when deciding keyword bids?

Google Ads Fundamentals, Knowledge Base

Question | Explanation | Answer

Question:

An advertiser looking to drive conversions is using manual cost–per–click (CPC) bidding. Which factor should be most important for this advertiser when deciding keyword bids?

a – The profit derived from a paid click

b – The bids of the next closest advertiser

c – The average profit per conversion

d – The Quality Score of the keyword

Explanation:

In Google Ads, cost-per-click (CPC) bidding means that you pay for a click on your ads. Also, you can choose between manual and automatic bidding strategies. Choosing manual bids gives you a full control over your budgets. This lets you set bids at the different levels. For example, ad group level, or for individual keywords or ad placement. So you know you’re bidding just what you want for the clicks that mean the most to you.

But which factor should be most important for this advertiser when deciding keyword bids? Well, it depends on many factors, such as industry you are working in, keywords, competition, location, and many others. However, in general, the most important factor is how much you earn from a paid click.  

Tip: In many cases, average cost-per-click for particular products are just too expensive. For example, you can’t bid 4 USD  for T-shirt which sells at 5 USD… And it happens very often with Google Ads. A solution is to research niche keywords and narrow your audience as much as possible.

Learn more on the official Google support website.

Answer:

The profit derived from a paid click

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