One thing we are increasingly deailing with is clients who are in the finance industry or have other high profit margin 'products'. 

Very often these clients and otther enquirers and businesses generally are terrified of the cost of their potential CPCs (cost per click) which is generally high because a) the amount of competition b)the potential rewwards means these businesses are willing to pay higher than for low margin products.

The CPC can never be the main concern in a pay per click campaign rather the cost per conversion (sale or lead). If the CPC is very high but the conversion rate is good and cost per conversion accetpable what does it matter if the CPC is £1, £5 or even £10+? To exemplify this one of newest clients is currently paying CPCs of average £8 - to many of you im sure you find that incredible that someone would pay it. HOWEVER their conversion rate (a conversion in their case is a sale) is about 10% so the cost per conversion is circa £80 and profit per sale £300-£1000 so the client is incredibly happy!   

Our main objective for them and all our clients is to get the conversion rate as high as possible and the cost per conversion as low as possible. This is why pay per click management is about alot more than choosing keywords and bid prices!

So the answer to the question 'when are cpcs too expensive?' - when the conversion rate isnt high enough. 

 -Andy

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