Ideal Starting Bid For Manual CPC

Modified on Mon, 31 Jul 2023 at 12:00 PM

To determine your ideal Max CPC bid when manual bidding, you will need to figure out a few things first.


  1. What is your website conversion rate?

  2. What is your target CPA (determined in the ROAS Calculator)? 


Once you have both of these, you can proceed with what your target CPC would be. 



The formula to find this out is:


Conversion Rate x Target CPA = Target CPC


Let’s break this down with an example.


Tom runs an ecommerce brand that has an average conversion rate of 3.5% and has determined that his ideal CPA is $25.  So..


3.5/100 x 25 = 0.87


This means that with his current conversion rate and target CPA, Tom can afford to spend $.87 per click in order to reach his target. 


We suggest taking the calculated CPC and rounding it up to the nearest $.50. So in this example, the ideal max CPC bid would be $1. 


If the calculated CPC is $1.32, the ideal max CPC bid would be $1.50


Tom now knows what his ideal starting bid should be when running manual CPC campaigns.


CPC too low?


If the CPC feels too low or unachievable, you have two options - 

  1. Increase the site conversion rate

  2. Decrease your target CPA


 





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