• Scott Davis

    I don’t know a single client who’s CPC has gone DOWN in the last year. They’ve all gone up, some up to 300% over last years CPC.

    Where is Google getting this crap data from? I can send them their own Adwords reports showing only a rising average CPC for at least the last 12 months, different markets, different verticals, different clients.

  • John Redfield

    I think there is a story here…. somewhere :P

  • Peloquin

    I agree with Scott Davis. I work in an agency within markets from Apparel, Automotive, Gardening, Home Decor, Beauty and more. And I can provide reports that show we are NOT seeing a decrease in CPC rates. SMH.

  • victorpan

    If you’re bidding on the same keywords, you’re not going to see a decrease in your CPC unless: your QS goes up, your competitors don’t bid against you, you bid less competitively. If anything, beware of a bidding war.

    If you’re bidding on new keywords or areas in display which is lower than your current CPC, your account average CPC will go down. Some advertisers will also pause expensive campaigns and shift said budget to something cheaper.

    Google’s overall CPC has been going down. In other words, there’s more untapped ad inventory than you think from the new ad formats.

  • http://www.rimmkaufman.com/ George Michie

    Anyone tracking this over the long term carefully and comprehensively knows that overall CPCs have declined, not on desktop, but on the combination of desktop and smartphones. Google is right that this is a bad indicator of economic performance. Just like conversion rate is a deceptive metric: if you could double site traffic at low cost but the conversion rate of the additional traffic was 1/2 of the average, a smart marketer would do it in a second as long as the ROI made sense. Similarly, if Google can double the number of searches/impressions and clicks, but at lower CPCs on the increments, why wouldn’t they? Wall Street has been looking at the wrong metrics for years wrt Google.