Question

Hey Guys, First post on the group (hope to contribute with time as well). Question about bidding with regards to Max CPC vs Avg CPC (spent). I know historically after my account was seasoned/aged I would see about a ~20% delta (i. e. I paid 20% less than my max CPC) but it's been a couple years since my last account. Is this still the case? How long does it take for google to take history into the account and start applying a discount as a result of age/quality score, 3-4 months? Thanks in advance

Answer 1

Doesn't work like that. If you intuitively underbid then this "delta" will be higher. This isn't a metric I suggest you concentrate on, and nobody can answer this question without knowing how you tend to bid.  

Answer 2

Yeah. I agree with Adam. Your competitors are adjusting bids based on location & time of day. The avg CPC at 10am Tuesday will be different than 8pm Sunday. New accounts need aggressive bid adjustments based on Top Impression Share & Absolute Top Impression share by time & location. This is not a set it & forget it platform. Generally, if your max CPC bids are 20% higher than avg CPC, you’re more than likely overpaying. though that’s an educated guess without seeing the account.