Should I Pause a Keyword if the Cost Per Click Is Very High?

Short Answer: Not necessarily. If the cost per click is high but your average ticket or conversion value justifies it, continuing the campaign might still be profitable. However, if the high cost per click does not bring sufficient value, then pausing the keyword should be considered.

Full Explanation

When managing keywords for pay-per-click campaigns, a high cost per click (CPC) doesn’t automatically mean you should stop using that keyword. The decision to pause depends on the balance between the cost and the revenue generated. If the average ticket—or the amount of revenue made from each conversion related to that keyword—is high enough to cover the expenses and leave a profit, keeping the keyword active can be beneficial. On the other hand, if the CPC is high but the returns are too low or not worth your investment, it makes sense to pause the keyword to avoid wasting budget.

Step-by-Step Breakdown

1. Evaluate Cost per Click: Identify how much you’re paying for each click on the keyword.
2. Assess Average Ticket Value: Determine the average revenue generated per conversion linked to that keyword.
3. Compare Cost and Revenue: Analyze if the revenue from conversions covers the CPC and leaves you with a profit.
4. Decide Action: Keep the keyword active if it is profitable; consider pausing it if it results in losses or low returns.

Real Examples

Suppose a keyword with a high cost per click leads to sales with very high average ticket prices, continuing to bid on that keyword can make sense because the profits outweigh the costs. Conversely, if the same expensive clicks do not generate enough sales revenue or conversions, it is wise to pause the keyword and allocate the budget elsewhere.

Common Mistakes

• Pausing keywords solely based on high cost per click without considering conversion value.
• Ignoring the profitability of the campaign by focusing only on expense rather than return on investment.
• Failing to track or measure the average ticket associated with keyword-driven sales before making decisions.

FAQs

• Is a high cost per click always bad? No, if the resulting sales or conversions have a high value, a high CPC can be justified.
• When should I pause a high-cost keyword? When the cost per click exceeds what your conversions generate in revenue or profit.
• How often should I review keyword performance? Regularly, to ensure that your spending aligns with your campaign goals and profitability.

Key Takeaways

• High cost per click does not automatically require pausing a keyword.
• Always balance CPC against average ticket or conversion value.
• Pause keywords that are costly and do not provide sufficient value to your business.
• Make decisions based on profitability, not just on cost alone.