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Maximum CPC

Definition in short: The highest amount you are willing to pay for a single click on your ad.

What is the maximum CPC?

The maximum CPC is the highest amount you are willing to pay for a click on your ad. You set it when you bid manually. It is a bidding limit and not what you actually pay: you usually pay what is needed to hold your position, which is often less than your maximum.

Why is the maximum CPC important?

  • A ceiling per click: you know in advance what a click may cost at most.
  • Influence on Ad Rank: a higher bid helps your position, together with ad and landing page quality.
  • Not a fixed price: you usually pay less than your maximum.

Examples of the maximum CPC

  • With a maximum CPC of €1.50 you pay at most that amount per click (before bid adjustments), often less.
  • A store sets brand keywords at €0.50 and expensive product keywords at €2.
  • With 100 clicks and €80 in costs the average CPC is €0.80, even if the maximum CPC was €1.50.

How do you use the maximum CPC?

Work out your bid from what a click may cost you: calculate back from your conversion rate and the value of a conversion. Then look at impression share and average CPC and adjust in small steps. With Smart Bidding, Google sets the bid for each auction itself. Read more about Google Ads campaigns.