When optimizing a Google Ads account, the Cost Per Click (CPC) can increase due to various factors. Here are some reasons why CPC can go up during the optimization process:
- Improved Ad Position: Your ads may need higher positions in the search results, often leading to higher CPCs. Higher ad positions generally yield better visibility and click-through rates but may come at a higher cost.
- Increased Competition: As you optimize your account and refine your targeting, you might enter more competitive auctions. Higher competition can drive up the bidding competition, leading to increased CPCs. This often occurs in highly saturated markets or during peak times when multiple advertisers are vying for the same audience.
- Expanded Targeting: When optimizing an account, you may expand your targeting options, such as targeting additional keywords, geographic locations, or increasing budgets. While this broader targeting can increase your reach, it can also increase competition and temporarily drive up CPCs as more advertisers target the exact keywords or audience segments.
- Seasonal Demand: Depending on your industry or business, certain times of the year may experience increased demand and competition. Advertisers may increase bids during peak seasons or events to capture potential customers’ attention, resulting in higher CPCs.