How to Predict Your CPCs with Google Ads Keyword Planner

bidding google ads keywords tools Apr 08, 2024
a screenshot of the google ads interface showing keyword planner, with a photograph of a man holding his hands up in relief

By: Jyll Saskin Gales, Google Ads Coach

Starting a new Google Ads campaign can be daunting, especially when it comes to figuring out your cost-per-click (CPC). How much will each click cost you? Is there a way to predict it? The answer lies in the Keyword Planner tool, but there's a bit more to it than meets the eye.

 

The Power of Keyword Planner in Google Ads

Google Ads' Keyword Planner is a valuable, free tool for estimating your CPC. You can access it under Tools > Planning in your Google Ads account. If you're a newbie, start by entering your website to see which keywords Google associates with it. If you already have keywords in mind, enter those directly instead.

Pro Tip: Don't forget to set your Location Targeting before hitting "Get Results." This ensures you're seeing data relevant to your target audience, whether it's a specific city or an entire country.

 

What does Keyword Planner tell you?

Keyword Planner doesn't give you a single CPC estimate; instead, it provides a range of what it might cost to reach the top of the page for a given keyword. This range can be confusing, but a simple way to estimate your CPC is to take the average. For instance, if the range is $3-$7, assume a $5 CPC. If in doubt, err on the side of overestimating, as it's better to have a larger budget than not enough budget.

Keep in mind that not every keyword will have a CPC range. In such cases, look at similar keywords for an estimate.

 

Are CPCs higher for new advertisers?

New Google Ads accounts often experience higher CPCs initially. This isn't a penalty, per se, but rather a reflection of your lack of Quality Score, a crucial factor in ad rank. Google doesn't have enough data to assess your ads' quality yet, so it plays it safe with higher bids. But rest assured, as your ads accumulate impressions and clicks, your Quality Score will improve, leading to lower CPCs over time.

 

Key Takeaways

  • Use Keyword Planner to estimate your CPC, but remember it's just an estimate.
  • Don't be discouraged by initial high CPCs in new accounts.
  • Focus on creating high-quality ads with relevant messaging to improve your Quality Score and lower your CPCs.

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Ready to master Google Ads once and for all?

I’m Jyll Saskin Gales, your Google Ads Coach. I worked at Google for 6 years, bringing the best of Google's insights and ad products to the world's largest and most sophisticated advertisers. Now, I’m a Google Ads coach, consultant and teacher, working with business owners, marketers, agencies and freelancers.

I founded Learn with Jyll to make Google Ads training accessible for aspiring and experienced practitioners. My signature Google Ads training program, Inside Google Ads, is the right fit for most business owners and marketers. If you have zero marketing experience and want to ensure you understand all the jargon and terminology first, Google Ads for Beginners will get you ready in just a few hours.

Feel free to contact me with questions.

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