E = MC X PPC?

Unfortunately, Albert Einstein didn’t live long enough to create a formula to predict actual Cost Per Clicks (CPC's).  Experience in the field can give one an estimate of CPC’s, but the only true way to know what they will be is to run an account. It is uncertain how Google will view the relevance of a landing page and even then CPC’s can change based on competition and history accrued.


Have no fear! I’m still here, and I will give you a “How To” guide to predicting actual CPC's.

Always the sidekick, Jay is finally able to be the hero.

How to Use Google's Traffic Estimator

Let’s start by using the Google Adwords Traffic Estimator. Plug in your desired keywords, the maximum CPC you are willing to pay and a daily budget. Traffic Estimator then generates several pieces of data for us to look at. For our purposes, all that matters is the darker green, highlighted column on right. Here we can see Google's estimated CPC for each of the searched terms.

The Reality

While it would be nice to rely on these numbers, unfortunately this tool is just a starting point. From my experience these estimated average CPC’s tend to be about 20% on average lower then actual CPC’s. Digital agencies in Chicago should be careful not to promise or expect results solely based on the data provided. 

Once we add this 20% to these numbers we must now consider the dynamics of our individual account. If we are targeting highly populous or highly competitive areas, traffic CPC’s will be higher than the national norm. Of course CPC’s will be lower in less dense, competitive areas. The next factor is how well the AdWords account is set up.

A great PPC team will follow Google’s best practices and produce relevant ads, a relevant landing page, quality load times etc. Keeping this in mind, CPC’s can be improved by as much as 25% over less friendly ads.