What Is It?
The highest amount you are willing to pay for a click on your pay-per-click ad for a particular keyword.
The value you set for your Max. CPC is not necessarily, and in most cases is not, the amount you will actually pay for a click on your ad. Average CPC will show you how much you are actually paying for clicks on your ads.
How Is It Determined?
You have the option to have it set automatically by your PPC software, or you can set it manually at the ad group or keyword level.
When using the manual option, you will set a default Max. CPC for the ad group. This default will be applied to all keywords within that ad group.
Specific Max. CPCs can be set for individual keywords within an ad group. For keywords that are more important to you, you may want to increase their Max. CPC; if the keyword is less important, you may want to decrease its Max. CPC.
Why Is It Important?
The Max. CPC of a keyword is used in the bidding process that occurs in the background before ads are shown. It is used to determine if your ad is eligible to be shown at all. If your ad is eligible to be shown, the Max. CPC is used to determine how high in the search results your ad is displayed (by comparing the Max. CPC and other factors against your competition).
What’s a Good Number?
This depends on many things:
- How much of your budget are you willing to spend to bid on one keyword?
- How important is the keyword to your campaign?
- How much competition is there on the keyword?
Why Increase Your Max. CPC
Increasing your Max. CPC can move your ad up on the search results page (or at the very least get you to the level where your ad is eligible to be displayed).
The Bottom Line
Your Max. CPC is the tool used to help show how important a keyword is to your campaign and how much you are willing to pay to show up in the search results. Take a look at your Maximum CPCs today and ensure you are bidding appropriately for your most important keywords, to get the most ROI from your PPC campaigns.