{"id":18112,"date":"2017-01-19T14:14:54","date_gmt":"2017-01-19T12:14:54","guid":{"rendered":"https:\/\/www.geotelecom.mx\/?p=18112"},"modified":"2023-11-22T08:55:41","modified_gmt":"2023-11-22T07:55:41","slug":"calcular-el-cpc-ideal-para-pujar","status":"publish","type":"post","link":"https:\/\/www.geotelecom.mx\/en\/blog\/calculate-the-cpc-ideal-ideal-for-bidding\/","title":{"rendered":"How to calculate the ideal CPC to bid on a Google AdWords account?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">How many times have you tried to find the 'perfect' bid for a particular Google AdWords campaign? For starters, not everyone is equally brave, not to mention the few clues that Google Shopping gives about the level of quality. That's why we thought about the usefulness of<strong>\u00a0a small guide, on how to calculate the ideal CPC\u00a0<\/strong>to bid profitably. <\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Contents\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.geotelecom.mx\/en\/blog\/calculate-the-cpc-ideal-ideal-for-bidding\/#Formula_para_calcular_el_CPC_ideal_para_pujar_en_Google_AdWords\" >Formula to calculate the ideal CPC to bid on Google AdWords:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.geotelecom.mx\/en\/blog\/calculate-the-cpc-ideal-ideal-for-bidding\/#%C2%BFEs_esta_operacion_la_solucion_a_todos_nuestros_problemas\" >Is this operation the solution to all our problems?<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p class=\"wp-block-paragraph\">Not obsessing, of course, but it can make our management a little easier. When we turn to Google Academies, it's the quintessential shocking mathematical formula. Maybe you can be impressed too, right? We tried it!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Formula_para_calcular_el_CPC_ideal_para_pujar_en_Google_AdWords\"><\/span>Formula to calculate the ideal CPC to bid on Google AdWords:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine that our business needs to achieve \u20ac100 for every \u20ac5 of investment. First, let's calculate the average order of our store:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Average order<\/strong> = Revenues \/ Transactions.<\/li><li>The <strong>5% of the result of this operation<\/strong>will be our quantity <em>'cap<\/em> maximum, to be able to invest in the Google Adwords account.<\/li><li>But it doesn't end there. We also need to know, <strong>how many visits do we need to achieve a sale<\/strong> in our online store. We will therefore divide: <strong>100 \/ % Total Conversions<\/strong>.<\/li><\/ul>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"> Stop for a moment to think about it and you will see all the sense. The final formula establishes the ideal CPC to bid as the result of this division:<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong> Maximum amount to be invested in Google AdWords \/<\/strong><strong>Number of people we need to achieve a sale.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ex. We have an online store that this month has earned 365,341 \u20ac, achieving 938 transactions. If, as mentioned above, we want 100 \u20ac for every 5 \u20ac and our conversion rate is 1'25%, let's discover our CPC Max. Ideal!<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>We calculate the <strong>average order<\/strong>: 365.341 \/ 938 = 389,48 \u20ac<\/li><li>5% of 389'48 = 19'47 \u20ac is ours <em>'cap<\/em> maximum to invest in Google AdWords.<\/li><li>We calculate the <strong>number of visits I need<\/strong> to perform a conversion: 100 \/ 1'25 = 80 users<\/li><li><strong>SOLUTION<\/strong>. The ideal CPC to bid if we want to achieve profitability is <strong>0'24 \u20ac<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%C2%BFEs_esta_operacion_la_solucion_a_todos_nuestros_problemas\"><\/span>Is this operation the solution to all our problems?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No, of course not. Undoubtedly, discounting from the average order the fixed costs of the company, the data would be much more realistic, but it is information that most of the time, Digital Marketing Agencies do not know. Even with this, it can be a <strong>indicative metrics when playing with bids<\/strong> in the different SEM accounts. Therefore, not only for bidding on Google AdWords.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We can apply it to the ideal CPC in <a href=\"https:\/\/www.geotelecom.mx\/en\/analisis-de-comparadores-online\/\" target=\"_blank\" rel=\"noopener noreferrer\">price comparators<\/a>in <a href=\"https:\/\/www.geotelecom.mx\/en\/pixel-de-facebook\/\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook Ads<\/a>Bing Ads,... <em>Did you already know about this formula? Do you find this data interesting on a global level? <\/em> <em>\u00a0Shared knowledge makes us better. If you like it, share it! If you disagree, tell us about it! \ud83d\ude42 \ud83d\ude42<\/em> <\/p>","protected":false},"excerpt":{"rendered":"<p>How many times have you tried to find the 'perfect' bid for a given campaign in Google AdWords? For starters, not everyone is equally brave, not to mention the few clues that Google Shopping gives about the level of quality. That's why we thought it would be useful to have a little guide on how to calculate the ideal CPC to bid profitably. Without obsessing, of course, but it can make our management a little easier. When we turn to Google Academies, it's the quintessential shocking mathematical formula. Maybe it can impress you too, right? We tried it! Formula to calculate the ideal CPC to bid on Google AdWords: Imagine that our business needs to achieve 100 \u20ac for every 5 \u20ac of investment. First, let's calculate the average order of our store: Average order = Revenue \/ Transactions. The 5% of the result of this operation, will be our maximum 'cap' amount, to be able to invest in the Google Adwords account. But not everything ends here. We also need to know how many visits we need to achieve a sale in our online store. We will therefore divide: 100 \/ % Total Conversions. Stop for a moment to think about it and you will see all the sense. The final formula establishes the ideal CPC to bid, as the result of this division: Maximum amount to invest in Google AdWords \/ No. of people we need to achieve a sale. Ex. We have an online store that this month has earned 365,341 \u20ac, achieving 938 transactions. If, as we said, we want 100 \u20ac for every 5 \u20ac and our conversion rate is 1'25%, let's discover our Max CPC. Ideal! We calculate the average order: 365,341 \/ 938 = 389.48 \u20ac 5% of 389'48 = 19'47 \u20ac is our maximum 'cap' to invest in Google AdWords. We calculate the number of visits I need to make a conversion: 100 \/ 1'25 = 80 users SOLUTION. The Ideal CPC to bid if we want to get profitability is 0'24 \u20ac Is this operation the solution to all our problems? No, of course not. Undoubtedly, discounting from the average order the fixed costs of the company, the data would be much more realistic, but it is information that most of the time, Digital Marketing Agencies do not know. Even with this, it can be an indicative metric when playing with bids in the different SEM accounts. Therefore, not only for bidding in Google AdWords. We can apply it to the ideal CPC in Price Comparators, Facebook Ads, Bing Ads,... Did you already know this formula? Do you find this data interesting at a global level?  Shared knowledge makes us improve. If you like it, share it! If you disagree, tell us about it! \ud83d\ude42 \ud83d\ude42<\/p>","protected":false},"author":42,"featured_media":19051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[26],"tags":[],"class_list":["post-18112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-google-ads"],"_links":{"self":[{"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/posts\/18112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/users\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/comments?post=18112"}],"version-history":[{"count":0,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/posts\/18112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/media\/19051"}],"wp:attachment":[{"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/media?parent=18112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/categories?post=18112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/tags?post=18112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}