Working in different verticals will quickly teach you something about cost per click: it varies wildly.
A CPC for a pair of sneakers will be in a totally different ballpark than searches for exterminator services, for example.
In general, if what’s being advertised doesn’t cost much, the average CPC is lower.
It’s really a function of economics for retailers and services: each sale is only worth but so much, and costs that aren’t in line with that don’t make sense to spend.
So in other words, shoe retailers are all going to max out around the same ranges, because their margins aren’t drastically different from one another. This tends to set the price for a given vertical.
Still, this creates challenges for instances where CPCs are higher: every click matters, and it costs dearly.
Many retailers are willing to pay those costs, either because their product is worth that much, or they know they will make it back over time because of a customer’s lifetime value.
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I’ve worked with various clients competing in ridiculously high CPC environments, and currently work in-house doing it.
It’s like high stakes gambling some days, but positive ROI doesn’t have to be elusive.
There are a few steps you can take that will help your ROI when your costs might make some break into a sweat.
1. Have Proper Tracking in Place
Seems like a no-brainer, right?
It’s surprising when you work with high-cost client environments and find they still do not…