Although I recently created an article on why you need to increase your campaign’s CPC, there is an argument too like with everything that in certain situations, you may need to decrease your CPC. For example, the advertisers that have high CPCs usually except a huge 
return on their investment in PPC such as banking organisations: a $20 click can potentially gain them an extra customer in banking for life. Whereas, somebody who merely wants traffic to a webpage can afford to decrease their CPC because in doing so, they can get more traffic for their money’s worth.
No matter what type of campaign you have, you still might want to consider lowering your CPC for more universal reasons that are unaffected by your campaign’s objectives.
To Reduce Click Fraud
A research showed that potentially up to 20% of all clicks in PPC are in fact click fraud. Therefore, advertisers are wasting a lot of their money to scammers and click fraud. Threat not because in reducing your CPC, you will reduce the chances your campaign will be affected by click fraud.
The number one placement for ad units where click fraud appears the most is with the highest appearing adverts on a webpage or the first advert that appear at the top of an ad unit. This is because the highest appearing adverts will load first providing more chances for random clicks. As well as this, the advert that appears at the top of an ad unit is likely to be close to a link such as the title to an article etc. Therefore, there is a strong possibility it will be clicked on by mistake. To stop this from happening, you can simply lower your CPC which will keep your advert away from these high click fraud areas. You can even test to see if this strategic move works when you see your conversion rate rise. See more on click fraud in PPC campaigns here.
To Gain More Conversions
This is a new concept which many advertisers will not recognise. Many campaigns have high CPCs because the traffic they get are more likely to have a conversion. This is true. But, if you had a lower CPC with a lower conversion rate, surely that can bring the same amount of conversions? Let’s produce an example:
- Campaign One has a CPC of $10. In doing so, the conversion rate is a strong 80%. But, because the CPC is so high, the campaign only brings in 100 web users to the landing page costing $1000. Therefore, the campaign produces 80 conversions at $12.50 per conversion.
- Campaign Two has a CPC of $2. The problem is that the conversion rate has suffered from the poorer traffic reducing to 30%. However, because the CPC is so low, the campaign, for $1000, has managed to bring in 500 web users to the landing page. This means campaign two has produced 150 conversions at $6.67 per conversion.
