Cost-per-click (CPC) - Google AdMob Help (2024)

FAQs

Cost-per-click (CPC) - Google AdMob Help? ›

The cost-per-click (CPC) is the amount an advertiser pays for each click on their ads for performance-based campaigns set up with a goal of number of clicks. Advertisers set CPC bids to tell AdMob how much they're willing to pay for each click.

A good CPC (cost per click) rate is determined by your ROI on the spend. If something costs $1, you want to make at least $1.20 back (at a minimum).

Industry. Your industry directly impacts your Google Ads costs. Overall, the average CPC in Google Ads across industries is $2.69 for Search and $0.63 for Display. Competitive industries such as finance, insurance, and fitness have a high average cost per click compared to other sectors.

Another major factor in determining your CPC is Quality Score. Google's Quality Score is a measure of expected click-through rate, ad relevance, and landing page experience. The CPC ad auction directly factors in Quality Score. If your competitors' Quality Score rises, so will your CPC.

AdMob Payment

Moreover, the CPM rates for AdMob may vary from $0.2 to $10 per 1,000 impressions based on the location of your app users, adding yet another variable into revenue calculation. Google AdSense pays publishers via the following payment methods: Check.

CPC is a key indicator of advertising efficiency, with lower CPC values generally considered more cost-effective, while higher values may indicate a need for optimisation to improve the campaign's return on investment.

Your ideal CPC is at least $0.01 less than your break-even CPC. For example, let's say your average conversion rate is two percent and your single product sale profit is $20. This means your break-even CPC would be $0.40 ($20 x 0.02). Therefore, you would want to aim for a CPC of $0.39 or less.

If your ads are receiving clicks but not resulting in conversions, you may need to lower your max CPC to reduce costs and improve ROI. If your keywords are performing well and you have additional budget, consider increasing your max CPC to capture more traffic and conversions.

Below are the 97 countries represented in the map, in order of highest average cost per click to lowest average cost per click, compared to the US average CPC, which is between $1 and $2 on the Search network. The United Arab Emirates has an average CPC 8 percent greater than the US average.

Does a high CPC mean you shouldn't bid? ›

If someone clicks on your ad, you won't pay more than your max CPC. A higher bid generally helps your ad show in a higher ad position on the page. But you generally only need to pay the minimum amount—as long as you beat competitors.

Google Ads drive faster results than SEO

With paid search you can move up from your competitors and reach your audience a lot quicker. This is especially useful for new businesses that are looking to promote their services locally, for example.

One effective way to deal with high CPC keywords is to optimise your ad copy and improve your Quality Score. Ad platforms like Google Ads consider your ad's relevance and quality to determine your Quality Score. A higher Quality Score can lead to lower CPC for the same keyword.

For example, if your app has 1,000 daily users, an eCPM of $5.00 ($5.00 per 1000 impressions), and each user sees three ads daily, you could earn $15 daily (3 ads displayed daily to 1000 users = $15).

Enable all ad types

Your earnings could increase if you allow all ad types to display. By enabling all ad types, more advertisers can bid on your app's inventory and help increase your eCPM. Limiting ad types may result in decreased revenue.

If your primary goal is to maximize revenue, AdMob may be the better choice as it generally offers higher ad rates for mobile apps. However, if you value flexibility and ease of use, AdSense may be the better option. Ultimately, deciding which platform to use depends on your specific needs and goals.

What is a good CTR? CTR shows how often users clicked on your ads. While a good CTR depends on several factors specific to your ad campaigns, the average CTR for search and display ads is 1.9%. For search ads specifically, the average CTR is 3.17% and for display ads, the average CTR is 0.46%.

Your ideal cost-per-click will be determined by your target ROI, or return-on-investment. For most businesses, a 5:1 revenue-to-ad ratio is considered acceptable. This means for every dollar spent in advertising, five dollars in revenue is produced.

What is the average CPC in Google Ads? If you take the average CPCs across all different types of businesses and keywords in the US, the overall average CPC in Google Ads is between $1 and $2. That's on the Search Network. On the Google Display network, clicks tend to be cheaper, averaging under $1.