Worried About High CPCs with Maximize Conversions? You Shouldn't Be

By: Jyll Saskin Gales, Google Ads Coach

Are you worried that using Google's "Maximize Conversions" bidding strategy will cause your advertising costs to spiral out of control? It’s a common and valid concern. When you see your cost-per-click (CPC) numbers climbing higher than you’re used to, the natural reaction is to hit the panic button and revert to what feels safe, like manual bidding.

But what if those higher CPCs weren't a sign of a problem, but a signal that the strategy is actually working? Sticking with outdated methods because of this fear could mean you're leaving better results and higher-quality conversions on the table. Understanding why your costs might increase is the key to making smarter, more profitable decisions in your Google Ads account.

In this article, I'll show you a different way to think about bidding and cost. We'll explore why a higher CPC isn't the enemy you think it is and how a little patience can lead to significantly better outcomes.

We'll cover:

• Why Maximize Conversions often has higher CPCs by design.
• A simple analogy that explains the "learning phase" of a new campaign.
• The critical difference between an expensive click and low-quality traffic.
• Why patience is one of the most valuable assets for any Google advertiser.

The Truth About Maximize Conversions and High CPCs

Let's get straight to the point: Yes, using the Maximize Conversions bid strategy is often associated with higher CPCs compared to manual bidding. However, this isn't a flaw in the system. It's a core feature.

With manual bidding, you're telling Google the maximum you're willing to pay for any click. With Maximize Conversions, you hand the keys over to Google's Smart Bidding, whose one and only goal is to get you the most conversions possible within your budget. To do this, it has to be aggressive.

The algorithm analyzes countless signals in real-time for every single search, things like the user's device, location, time of day, search history, and more. It uses this data to predict the likelihood of that user converting. If it determines a user is highly likely to become a customer, it's willing to bid much higher to win that click. Conversely, if a click seems unlikely to convert, it will bid low or not at all. 

So, while you may see a higher average CPC, it's because you're paying a premium for clicks that are much more likely to turn into business. The cheap clicks are cheap for a reason: none of your competitors using Smart Bidding wanted them.

Your Google Ads Campaign Is a Toddler

Think of a brand-new campaign like a baby. It can't walk or talk yet. It doesn't know anything about the world. It’s pretty helpless. But just like a baby’s brain develops at an incredible pace, a new campaign using a Smart Bidding strategy like Maximize Conversions is designed to learn quickly.

I have a two-year-old son, and his journey with language is a perfect analogy for a campaign's learning phase. He talks constantly, but if you don't see him every day, you'd struggle to understand him. He calls ice cream “ikee.” He calls water "wata."

He’s making a lot of mistakes, but he's also improving. For instance, he used to call water “wawa.” Now, he says “wata.” It’s not perfect, but it’s getting closer to the target word, “water.”

Now, when he says “wata,” do I throw my hands up and say, "This kid is hopeless! I can speak perfectly. I'm not giving you any more water until you say it right!"?

Of course not! That would be ridiculous. But this is exactly what happens when advertisers panic and switch to manual bidding. They don't trust the system or give it time to learn. The first time they see a high CPC that confirms their bias, they pull the plug, thinking, "I knew it! I can do better than the machine." And just like that, their campaign never learns to say "water."

With Maximize Conversions, we have to push through the "wawa" and "wata" stages. We know that with more time, more data, and more opportunities to practice, the campaign will figure it out.

Don't Mistake High Costs for the Real Enemy

Learning is a difficult process that requires patience and investment. It takes time and money to gather enough data for Smart Bidding to work effectively. But it's a necessary investment because, over the long term, Smart Bidding will consistently outperform manual bidding.

The clicks that seem expensive are desirable for a reason. They're the clicks that Google, and your competitors, have identified as having the highest potential value. You're competing for the best possible traffic.

This brings us to a crucial mindset shift. Rising CPCs are not the enemy. Low-quality traffic is the enemy.

Would you rather have:

1. 100 clicks at $1 each, resulting in one sale? (Cost per acquisition: $100)
2. 20 clicks at $4 each, resulting in two sales? (Cost per acquisition: $40)

The second option has a CPC that's four times higher, but it's twice as profitable. By focusing only on keeping CPCs low, you might be actively choosing the less profitable path. You’re filling your site with visitors who were never going to buy in the first place, simply because they were cheap to acquire.

So, the next time you launch a campaign with Maximize Conversions and see the CPCs spike, take a deep breath. Remember the toddler learning to talk. The system is processing, making adjustments, and figuring out how to get you what you asked for. Give your campaigns the time and budget they need to learn, and you’ll be in a much better position to reap the rewards.