- CPC is a result of quality and competition.
- Higher CTR usually lowers CPC in search auctions.
- Judge changes by cost per lead.
Understand what drives CPC
In search auctions, your cost per click depends on your bid, the competition and an estimate of how useful your ad and page are. Better relevance can earn the same position at a lower price.
Four changes that usually help
These edits tend to lower CPC within a few weeks in the accounts we review.
- Split ad groups so each has one tight theme
- Add negative keywords weekly from the search terms report
- Put the main keyword in the headline and the page heading
- Cut landing page load time under 2.5 seconds
Work the math both ways
Cost per lead equals CPC divided by the click-to-lead rate. A $3.00 click at a 10% rate costs $30 per lead. A $4.00 click at a 15% rate costs $26.67 per lead. The higher click wins.
Use the CPC calculator to check your own figures before cutting bids.
Know when to stop cutting
If impression share drops sharply after a bid cut, you are giving away volume. Keep bids where the cost per lead sits at or below target, even when CPC looks high.
What share of viewers click my ad?
Questions about Paid Media Math
What is a normal CPC?
It varies widely by industry. Legal and insurance terms cost far more than retail terms, so compare with your own history.
Does quality score still matter?
Yes. Google still uses relevance and expected click-through rate in its auctions.
Should I switch to automated bidding?
Automated bidding works once you have enough conversion data, usually 30 or more conversions a month per campaign.
Key terms
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