Google Ads: Why Cost Per Click (CPC) Doesn’t Matter!
When running Google Ads campaigns, it’s easy to become fixated on the Cost Per Click (CPC). After all, paying 50p for a click sounds more appealing than paying £2.80, right? But what if those cheap clicks don’t lead to any conversions – such as phone calls or form submissions? In reality, Cost Per Acquisition (CPA) is the metric that drives real business results, and it’s what you should be focusing on.
Here’s why.
Cheap Clicks Don’t Always Mean Good Results
Let’s say you’re running a roofing and guttering business, and you decide to aim for clicks that cost around 50p to keep your expenses low. You might attract a lot of clicks, but if those clicks aren’t from people who actually need your services, you’re wasting your budget. Here’s an example:
Example 1: Cheap Clicks, No Calls
- CPC: 50p
- Total clicks: 20 clicks = £10 spent
- Conversion rate: 0% (no calls)
In this scenario, you’ve spent £10 and haven’t generated a single call. The low CPC looks appealing, but if those clicks don’t convert into leads, it’s essentially money wasted.
The Importance of Conversion Rates
Now, let’s compare that to a higher CPC where you may be spending more per click but getting a much better conversion rate.
Example 2: Higher CPC, Better Results
- CPC: £2.50
- Total clicks: 4 clicks = £10 spent
- Conversion rate: 25% (1 call)
Here, despite paying more per click, you’ve spent the same £10 but generated 1 call. The cost per call is £10, which is a much better return on investment than paying for 20 clicks with no results.
Why CPA is the Metric to Watch
The key takeaway here is that Cost Per Acquisition (CPA), or the amount you’re paying for each call or lead, is far more important than simply aiming for the lowest CPC. You could end up paying slightly more per click but ultimately getting more valuable conversions. In the roofing and guttering industry, your real goal is to get people to call you when they need your services, not just click on your ad out of curiosity.
When we manage your Google Ads campaigns, we’ll focus on driving conversions by optimising for the highest possible return on your investment. By tracking each call, we’ll be able to see exactly how many leads you’re getting and make adjustments to lower your CPA, not just your CPC.
How We Use Conversion Tracking to Maximise Results
One of the most powerful tools we use is conversion tracking, particularly call tracking. With call tracking set up, every time someone calls your business after clicking on your ad, it’s logged and counted as a conversion. This allows us to:
- See exactly which keywords and ads are driving the most calls
- Optimise the campaign to focus on what works, rather than wasting money on what doesn’t
- Continuously lower your CPA over time
By focusing on what really matters – driving conversions and not just chasing cheap clicks – we’ll help ensure that your campaign is delivering meaningful results for your business.
Higher CPC = Lower CPA (In Many Cases)
Another common misconception is that a lower CPC automatically means a lower cost overall. In reality, you’ll often find that paying more per click can result in a lower CPA because you’re targeting higher-intent users. Let’s consider one final example:
Example 3: The Balance Between CPC and CPA
- Campaign A: CPC of £1, conversion rate of 5%
- Campaign B: CPC of £2.50, conversion rate of 20%
For every 100 clicks:
- Campaign A spends £100 (100 clicks at £1 each) and generates 5 leads (5% conversion rate), resulting in a CPA of £20 per call.
- Campaign B spends £250 (100 clicks at £2.50 each) but generates 20 leads (20% conversion rate), resulting in a CPA of £12.50 per call.
In this example, the campaign with the higher CPC actually has a much lower CPA. You’re paying more per click but generating far more leads for your budget.
Conclusion: Focus on the Bigger Picture
At DPOM, we’ve been helping small businesses grow through smart Google Ads management for over 14 years. We don’t chase cheap clicks – we focus on driving conversions that lead to actual business. When you partner with us, we’ll set up advanced call tracking, continuously optimise your campaigns, and work to ensure that every penny of your budget is working hard for you.
If you want results – not just clicks – let’s talk. We’re the number one Google Ads management agency for small businesses, and we’re ready to help your business grow.
