Keyword Costs

[dane120]

What factors influence the actual CPC when the CTR is increasing on a daily basis.

My MAX CPC is set at £5.00 in the last 7 days my actual CPC is £3.09. During the period of 1st Dec - 7th Dec my actual CPC was £2.75.

Would the increase in CPC be purely down to new bidders entering the market?

[briggidere]

if another advertiser that was below you increases their max cpc this, could also be a factor in the increase of the actual cpc.

[dane120]

Isn't that the point of having a good CTR so even though another advertiser increases their max CPC this will not affect your CPC, unless it exceeds your MAX CPC?

Is it possible to drive your CPC dramatically down by producing relevant adverts alone?

[briggidere]

not if by raising their bids, their ads quality score rose higher than yours while at the lower price.
and as you max cpc was not yet reached it automatically increased what you are paying to raise your ad score above this competitor again.

does this make sense

briggidere

[dane120]

Briggidere thanks for your help.

One final question.

If increase my MAX CPC to £10 and my nearest competitors MAC CPC is still only at £4 would my advert position rise and my actual CPC stay the same until a competitor increases their MAX CPC?

Based on the Quality Score algo.