I love Google. I really do! It’s Google which is making me smarter and smarter day by day! Google has come a long way and I truly want them to see on the top spot for another decade without any solid competitors! @Google, it’s not my intention to hurt your reputation, I am just trying to help. Well, I discovered something that I believe no one discovered yet! I discovered:
Ad Rotation: Optimize for Conversions, Can Increase Avg. CPC!
Though I was Google adwords certified that doesn’t mean, I know everything or I am perfect. But I want to go very deep when I suspect something is not right.
That’s why I have written contents like:
Recently, my client’s adwords performance was going down. I tried almost everything to find out what was I doing wrong. Then I discovered a Google bug which is limiting daily budget and lowering conversions!
If you have set Ad rotation settings (you can find it in Adwords campaign setting -> Ad delivery: Ad rotation, frequency capping section) to “Optimize for Conversions” then be careful as it looks like it can increase keywords Avg. CPC more than Max. CPC, doesn’t matter what bid strategy you set or what amount you set for the keywords!
As far as I know, Google bot can only increase keywords bids from Max. CPC to higher level if you have set Bid Strategy to Manual CPC -> “Enable Enhanced CPC” function. But I didn’t know, Optimize for Conversions setting can also increase keywords Avg. CPC, more than Max. CPC!
I asked Google about this and here is what I received today:
Thank you for contacting Google AdWords. My name is …, and I will be assisting you with your inquiry.
I’m sorry to hear that you’re having difficulties understanding the data, but I’m very glad that you reached out to us — this provides us with the opportunity for us to better explain the issue to you, thereby allowing us to clear any misunderstandings possible.
From Image 1, we can see that at the ad group level, you’ve indeed set a maximum CPC bid limit of A$1.00.
However, there are a few ad groups that have Average CPC amounts of up to A$1.90, as can be seen for Ad Group: “Marriage Celebrant”.
This led me to Image 2, at the Keywords level, where you have some keywords that each have a different Max CPC bid amount.
The way the system bids, is that we follow the bid limits at the most granular level.
This also means that Keywords bids will win Ad Group bids, which will then win Campaign bids.
In your case, your keyword bid amounts, which are set at A$2.00, will then supersede the Ad Group bid amounts of A$1.00, and is the main reason why our bid amounts are hitting above the average CPC that we’ve set at the ad group levels for 12 May 2016, or any other days actually.
Hope this helps demystifies the concern that you have, but the system is actually working as intended 🙂
If you’d like me to help you clean up the keyword bids, please feel free to write back, and I’d be more than happy to assist going forward!
Also, if there is anything else I can expand on or clarify further, do not hesitate to write back – I’m just an email away and more than happy to assist you further.
I don’t want to disclose the name of that Google’s representative. That’s why I covered his/her name with rectangle. Here is the image view of that message: (you can click on the image for larger view)
They attached two images of an ad group in which keywords didn’t receive much clicks and Avg. CPC was not higher than Max. CPC.
But I made following video on the day when I asked Google help and I didn’t send it to Google then. Please check following video and let us know if you are facing same situation. Please use our comment box for any comments and don’t forget to show the proof!
Check This Video: