In this week’s Thought Starter video, we break down CPC and how marketing automation changes the way you should look at this metric. Check out the video here.
Hi, I’m Kayla from Dealer Teamwork bringing you a Thought Starter for the week.
Today let’s address an important question is cost per click, CPC for short, still important?
Historically dealers have closely monitored and controlled CPC for digital campaigns, especially with their SEM campaigns on Google. Marketing automation is the name of the game right now, and it will continue to grow in adoption and importance. As channels, like Google, advance their marketing automation capabilities, restricting metrics like CPC won’t just be a waste of time, it’ll actually hinder your campaign performance. This is especially important when using automation tactics like Smart Bidding.
In our 2021 Automotive Success Playbook we interviewed our Manager of Media Management, Michael Boucher, and he defined Smart Bidding as “using machine learning to optimize bids for each auction, instead of making blanket bids on every individual keyword.” When using this type of automation, your bid automatically adjusts at each auction to help your campaign perform better by prioritizing reaching searchers more likely to convert. To do this, Google needs the autonomy to adjust your bid which can raise CPC.
However, would you rather add more work to your plate to control CPC through manual processes and miss out on opportunities if your bid is too low? Or would you rather pay a little more to reach high quality audiences and let Smart Bidding automation systems take work off your plate by determining the best bid for you?
It’s also important to note that Smart Bidding doesn’t necessarily mean more expensive bidding. You can expect your CPC to fluctuate because Google is constantly adjusting your bids to help you meet your campaign objectives.
So in short, CPC is still important to monitor and to use as a diagnostic tool when problems arise, but setting strict bid caps, especially when using automation tactics, is no longer a best practice. That’s all for this week, be sure to like this video and to subscribe to our YouTube channel if you want more Thought Starters like this. And in the meantime, download our 2021 Automotive Success Playbook for more digital marketing tips and best practices for dealerships. Thanks for watching!