Question

Is it normal for average CPC to increase after increasing daily spend?  

Answer 1

Yeah. if your going after larger impression share it could be reflected in a higher CPC but it shouldn't be too noticable

Comments

@supremacist4 thank you, it’s definitely not a big change but it did Increase

Answer 2

No, not on Google

Answer 3

Yes, its totally related. What Google does when you increase budgets is to try to get more volume. It mainly does this by increasing your position in the auctions (so you normally see also a higher top of page rate). You pay higher CPC's for those position since volumes are one of the factors that has value and therefore increases your CPC. (The other main factor being traffic quality).  

Comments

Also the higher you are in your current position, the more premium you pay to get the impression share even higher. It costs more to go from 90 to 100 impression share than from 50 to 60.  

Answer 4

Yes, it’s literally supply and demand. The more money you have to spend the more auctions you need to win, the more aggressively you need to bid to win it. There are occasional exceptions, but from an economics theoretical model, that’s how it works.  

Answer 5

I see this on smart bidding often.  

Answer 6

Yes it’s normal, but you can control that by actually bidding on your keywords. All the smart bidding options will raise the cpc a bit because you’ll probably be getting found in higher positions.  

Answer 7

Yes, because your delivery has now changed. In other words, by increasing your daily budget, Facebook can now deliver your ads to placements that cost more (as well as the cheaper spots you were getting before). This then increases the CPC.  

Answer 8

Yes but not significantly.