Value of click cost (CPC)
Hi Everyone
I have a question about the true value of click costs. I want to know if higher value clicks are 'better' than lower value clicks?
So I've asked Amazon, if I set my CPC to say 60p, rather then 30p, will I see more sales for the clicks that are, for example, 55p, than for the ones that are say, 25p? Amazon tell me that to set my CPC higher I will win more bids, well of course! But are those higher cost bids better search terms or maybe from customers more likely to buy, etc, compared to the lower cost bids.
This makes a big difference because if the low cost clicks are as valuable, then of course we want to targets as many low cost clicks as possible, and may as well stay away from the more expensive ones...
Any advice much appreciated!
Value of click cost (CPC)
Hi Everyone
I have a question about the true value of click costs. I want to know if higher value clicks are 'better' than lower value clicks?
So I've asked Amazon, if I set my CPC to say 60p, rather then 30p, will I see more sales for the clicks that are, for example, 55p, than for the ones that are say, 25p? Amazon tell me that to set my CPC higher I will win more bids, well of course! But are those higher cost bids better search terms or maybe from customers more likely to buy, etc, compared to the lower cost bids.
This makes a big difference because if the low cost clicks are as valuable, then of course we want to targets as many low cost clicks as possible, and may as well stay away from the more expensive ones...
Any advice much appreciated!
4 replies
Seller_nqS9YiKaKKjxg
Hey,
Sometimes CPC can be lower for low competition, high audience - depending on these 2 factors you can see an average CPC I guess.
My point it the "valuable" ones are the ones that makes sales while spending low - can be a case of 10 clicks for £1.2 makes a sale and 20 clicks for £0.6 makes a sale - you should experiment in your own niche and check the results over extended period of time.
Seller_Uo7DjOjHQDtfz
You are not buying better quality customers with higher click prices.
You are biding to get to the front of your competition/advertisers.
You could say your ads will be shown in better places with higher click prices. The cheaper clicks may be available for advertising in less prominent spaces. Like right at the bottom of the page where say, 50% of customers won't even get to.
Or low-cost clicks are where no other advertisers/competition exists, so the clicks will be cheaper.
Ultimately, only Amazon knows why one click costs 25p vs. 55p. So you have to trust Amazon to be fair!
Seller_VpTps3nNkV8hZ
You just have to go through trial and error to see what works. Some of my best ads are really low cpc with limited targeting. I've had some with higher cpc that just burn money.
