New Domain? Higher CPCs
When you switch to a brand new domain for your Google Ads campaign, you may experience a significant increase in CPC (Cost Per Click).
- Quality and trust factors: Google values historical data and reputation when determining the quality and trustworthiness of a website. A brand new domain needs historical data, making it less established in the eyes of Google. As a result, Google may view it as riskier to display ads for that domain, leading to higher CPC.
- Lower Ad Rank: Ad Rank determines your ad’s position and CPC. Ad Rank considers factors like bid amount, ad quality, expected click-through rate, and landing page experience. A brand-new domain typically lacks a solid track record regarding user experience, engagement, and click-through rates. This can lower your Ad Rank and increase CPC to compensate for the perceived lower quality.
- Lack of relevancy signals: A domain with a long history accumulates valuable user behavior, engagement, and relevancy data. Search engines use this data to understand the relevance of your ads to users’ search queries. With a new domain, there is a lack of historical data, making it harder for search engines to establish relevancy. Consequently, search engines may require a higher CPC to test the effectiveness and relevance of your ads on the new domain.
- Competition and bidding: Established domains often have a more substantial presence and competitive landscape. Advertisers may have been actively bidding on keywords related to the industry or niche for an extended period. This increased competition can drive up CPC on established domains compared to a brand-new domain where competition might be relatively lower.
It’s important to note that while a new domain may initially result in a higher CPC, the CPC can decrease over time as your domain builds credibility, quality score, and positive user interactions. You can gradually improve your ad performance and reduce CPC by providing a great user experience, relevant content, and optimizing your campaign.
Unfortunately, there is no specific “timeline” for how long this process can take.