About Target CPC bidding for Demand Gen

Target cost per click (tCPC) bidding is an automated bid strategy that sets bids for you to get as many clicks as possible at your target efficiency. This concept is similar to Target CPA bidding, but focuses on the cost of clicks rather than the cost of conversions (actions). When you select the Target CPC bid strategy, you set your desired average cost per click. Google Ads uses your Target CPC to set a bid based on the likelihood of the ad to be clicked on.

This article explains how Target CPC bidding for Demand Gen works, what its settings are, and how to implement it.

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Before you begin


How it works

The goal of targeting an average CPC is to get as many valuable clicks as possible at or around a specific average cost goal you set. Target CPC bidding automatically finds an optimal bid for your ad each time it's eligible to appear by using historical information about your campaign and evaluating the contextual signals that are present at Google Ads auction-time.

Some clicks may cost more than your target and some may cost less, but altogether, Google Ads will try to keep your cost per click equal to the Target CPC you set. These changes in CPC take place because your actual CPC depends on factors outside Google's control, like changes to your website or ads or increased competition in ad auctions. Additionally, your actual click rate can be lower or higher than the predicted click rate.

For example, if you choose a Target CPC of $10 USD, Google Ads will automatically set your bids to try to get you as many clicks at $10 USD on average. To help improve your performance in every ad auction, this strategy adjusts bids using real-time signals like device, browser, location, time of day, remarketing list, and more.

Note: You can set different Target CPC limits for different ad groups within a Demand Gen campaign. The ads from those particular ad groups shall adhere to the set limits, accordingly. Further, when the Target CPC limits are set at ad group level then it shall override the Target CPA limit set at a campaign level.

When to use Target CPC bidding

If your main goal is to drive clicks and traffic to your website, use clicks as your campaign goal. Target CPC bidding can help you maximize your budget and optimize your campaign’s performance.


Implementation

You can set your Target CPC both at the campaign level and ad group level. By default, your campaign will aim to maximize clicks. You can set a Target CPC to help you get as many clicks as possible at a specific cost-per-click.

Your ad group will use your campaign level Target CPC. If you set an ad group-specific Target CPC, it will override your campaign level Target CPC.

How to set Target CPC at the campaign level

  1. Go to Campaigns within the Campaigns menu.
  2. Hover over an existing Demand Gen campaign and click the gear icon Tools and setting menu icon [Gear] next to its campaign name.
  3. Select the Target cost per click section to expand it.
  4. Check the box next to “Set a target cost per click (optional)”.
    • Note: The “Target cost per click” section will only appear if you select “Clicks” as your campaign goal.
  5. Input your target bid amount.
  6. If you’re satisfied with the campaign settings, click Save all changes at the bottom of the page.

How to set Target CPC at the ad group level

Ad groups in section menu

  1. Go to Ad groups within the Campaigns menu.
  2. Find an ad group in a Target CPC campaign.
  3. Click the pencil icon Edit next to the number in the “Target CPC” column.
  4. In the dialog box that appears, enter your desired ad group Target CPC.
  5. Click Save.

Ad group in edit campaign page

  1. Go to Campaigns within the Campaigns menu.
  2. Hover over an existing Demand Gen campaign and click the gear icon Tools and setting menu icon [Gear] next to its campaign name.
  3. Select your ad group, then select the Ad group target section to expand it.
  4. Check the box next to “Set a target cost per click (optional)”.
  5. Input your target bid amount.
  6. Click Save all changes.

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