How to increase Cost per Click (CPC) in Google AdSense

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Before we discuss the top ways to increase AdSense CPC, let’s first define the term CPC or ‘Cost Per Click.’ If you are using Google AdSense on your web pages then you will know that these are adverts from Google’s AdWords advertising program. Advertisers using the AdWords program pay Google for every click made on their adverts.
When you place AdSense blocks on your web

pages and blogs, you get paid a percentage of what advertisers pay Google. Currently this is 68% of the bid price for that advert. So if somebody is paying Google $2 for every click on a specific advert for a specific keyword, then you get $1.36 every time a visitor to your site clicks on that advert if Google has placed it on your page.
What you have to do is to do your best to maximize the CPC price, so that the adverts on your web pages and blog posts make you most money every time a visitor clicks on them. This involves getting Google to place the highest possible value adverts on your pages. You cannot decide the PPC of the published ads yourself – Google decides that based on several aspects of your web page/blog page/blog post.
There are two factors involved here: the CPC and CTR (Click Through Rate) – the latter is the ratio of visitors who actually click on an advert rather than just read the page content and ignore the ads. A high CTR is often better than a high CPC.
Thus, if you get a CTR of 2% with adverts with a CPC of $0.75 (2 visitors in each 100 click on an advert), then that is better than a CTR of 1% with adverts with a CPC of $1.20. With the former, each 1,000 visits will make you $10.20 (68% of $15) while with the latter you would make only $8.16. So CTR matters, not just earnings per click. It’s how many that click that often makes your money, not always the cost of each click.
These are examples only, and your income per 1,000 visitors will depend upon the relevance of the AdSense ads to your visitors and where the adverts are situated on your site. There is also a lot you can do to improve CTR, but let’s first focus on how you can attract the best paying adverts: those with the highest CPC. 

KeywordCost per Click (CPC)
Conference Call$42.05
Cord Blood$27.80

The Most Expensive PPC Keywords 
How does Google make money? Surprisingly, 97% comes from online pay-per-click advertising. At WordStream we can’t get enough PPC; that’s why we decided to conduct some research and find out what the most expensive keywords are in Google. Some of our results about the most popular and most expensive PPC keywords were to be expected, while some (like cord blood and mesothelioma treatment) surprised us and our readers.
Want to learn more about how Google advertising works? Check out our infographic: What is Google AdWords?
Top 10 Most Expensive Google Keywords
The Top 10 Most Expensive Keywords are:
  1. Insurance
  2. Loans
  3. Mortgage
  4. Attorney
  5. Credit
  6. Lawyer
  7. Donate
  8. Degree
  9. Hosting
  10. Claim
You’ll notice that these top ten most expensive AdWords keywords deal primarily with financing and industries that manage vast sums of money. The fact that the educational keyword “degree” is one of the top ten most expensive Google keywords, right up with lawyers and credit, reminds us of the growing cost of education.
The next ten most expensive keywords complete our total list, resulting the top 20 most expensive AdWords keywords:
  1. Conference Call
  2. Trading
  3. Software
  4. Recovery
  5. Transfer
  6. Gas/Electricity
  7. Classes
  8. Rehab
  9. Treatment
  10. Cord Blood

There you have it – the highest cost keywords. If you are considering entering into one of these industries, be ready to pay high cost per clickrates for the top keywords. While some may start treatment facilities for the greater good, be aware that you’ll wind up in one of the most expensive niche groups, and your paid search marketing wallet will suffer from those high CPCs.
The most expensive SEM keywords may be frustrating for those in the industries, but they are the best keywords for Google, who makes 97% of revenue from advertising on Google sites (AdWords, AdSense). In the last four quarters, the biggest player of search engine historybrought in $32.2 billion in total advertising revenue.
The Most Expensive AdWords Keywords
While the minimum bid per keyword is 5 cents in AdWords, the high cost keywords listed above are nowhere near that. Google can make up to $50 per click from the most expensive PPC keywords. Keyword advertising is a highly lucrative business for Google. Learn more about thecosts of AdWords here.
The most expensive niche groups paying for the most costly keywords are industries with very high lifetime customer value; the most costlyAdWords keywords exist in industries where the customer pay-off is considerably high. Ultimately, the amount of money insurance companies get from an individual signing up for insurance with them makes high cost per click rates worth the investment, even at $54 a click.
Tips for Businesses in Expensive Google Keyword Niches
Asking yourself, Should I use AdWords? If you are in an industry paying big bucks for the most expensive Google AdWords key words, you will want to make sure you are implementing pay per click marketing best practices. Here are a few to keep in mind: 
Quality Score: High AdWords Quality Scores can lower your CPC and help you pay less for the most successful keywords. Tools like theKeyword Niche Finder provide you with the ability to divide large keyword lists into smaller, more segmented lists that you can easily write targeted ad text for, resulting in improved Quality Scores and better keyword rankings. 
Be Specific: Target specific, 3-5 word keywords. You can use a Google AdWords keyword tool to come up with specific keyword ideas, both broad and long tail keywords. 
Use Negative Keywords: Use a negative keyword tool to find keywords you do not want to show up for. Irrelevant keywords result in costly clicks that will never drive conversions, and when bidding on the most expensive keywords at $50 per click, negative keywords are absolutely essential. 
Focus on Relevancy 
Landing Page Optimization: While most AdWords conversion rates stay around 2%, we will often see landing pages convert at 20% or even 30%. The key to landing page optimization is to continuously try out different types of offers and test how people respond to them. 
Want to learn Google AdWords? WordStream has the educational resources, tools, and PPC management software your businesses needs for success.
How Does Google Make Its Revenues?
Many people are surprised to find out that Google makes 97% of their revenue from online pay-per-click advertising. We decided to dig in and break apart exactly which keywords makes Google the most money.
How Was the Data for the Most Expensive Keywords Study Compiled?
For the Most Expensive Keywords Infographic, we compiled data from our own large keyword database and the Google Keyword Tool to determine the top 10,000 most expensive English-language keywords over a 90-day period.
We then organized the grand total keyword list into categories by theme, such as "Credit," or “Insurance.” The largest keyword categories were determined by weighting the number of keywords in each category, as well the estimated monthly search volume and average CPC for each keyword.
Why is Quality Score Important For Bidding on Competitive Keywords?
Quality Score is key for using AdWords effectively and getting the most out of your advertising budget. When bidding on competitive keywords, Quality Score is especially crucial because High Quality Scores can help you lower your average cost-per-click.
If you’re concerned about your Quality Score, try running the free AdWords Grader, a free tool that helps advertisers evaluate their PPC campaigns based on important metrics like Quality Score. If you score low, Quality Score can be improved by writing more targeted ad text and landing pages.
Why are Negative Keywords Helpful When Bidding on Expensive Keyword Categories?
Negative Keywords help you eliminate unwanted queries from triggering your ads. A negative keyword tool can be used to help figure out what kinds of keywords you’re likely to be matched against and weed out keyword phrases that aren’t relevant, helping prevent wasted spend.
Why is Landing Page Optimization Important When Bidding on Expensive Keywords?
Well-optimized landing pages can have conversion rates as high as 20% or even 30%. The key to landing page optimization is trying out different types of offers, testing them, and seeing how people respond.
Why is it Important to be Specific When Bidding on Expensive Keywords?
Targeting more specific keywords ensures that you only pay for keywords that are relevant to your business. Target specific, 3-5 word keywords. Implementing a keyword tool can help you generate specific keyword ideas, just make sure you are only paying for keywords that are specific to your business.
Are There Any Other Industry Studies About the Most Expensive Google Keywords?
Yes, we’ve done several other studies in different quarters about Google’s earnings. Check out our: 
Breaking Down Google’s 2011 Revenues 
Our follow up to this study, Where’s Mesothelioma, What is Cord Blood, & Other FAQs 
What is the Minimum Bid Per Keyword in Google AdWords?
The minimum bid per keyword is 5 cents.
What is the Most Money Google Can Make For Each Click?
Google can make up to $50 per click from PPC keyword bids
What is the Most Expensive Keyword Category?
Insurance keywords are by far the most expensive. The Google AdWords keyword categories with the highest volumes and costs, such as the “insurance” category, represent businesses with very high lifetime customer value – in other words, industries like these are willing to pay a lot to acquire a new customer because the long term pay out in so beneficial.
What is the Top CPC for Insurance Keywords?
The top CPC for insurance keywords is $54.91.
What is the Highest Cost-Per-Click for Loan Keywords?
The highest CPC for loan keywords is $44.28.
What is the Top Cost-Per-Click for Mortgages Keywords?
The top cost-per-click for mortgage keywords is $47.12.
What is the Greatest CPC for Attorney Keywords?
The greatest CPC for attorney keywords is $47.07.
What is the Highest Recorded Cost Per Click for Credit Keywords?
For credit keywords, the highest CPC is $36.06.
What is the Top CPC for Lawyer Keywords?
The highest cost-per-click for lawyer keywords is $42.51.
What is the Greatest CPC for Donation Keywords?
The top largest cost-per-click for donation keywords is $42.02.
What is the Top CPC for Degree Keywords?
The greatest cost-per-click for degree keywords is $40.61.
What is the Top CPC for Hosting Keywords?
With hosting keywords, the highest CPC is $31.91.
What is the Largest CPC for Claim Keywords?
The top CPC for claim keywords is $45.51.
What is the Top CPC for Conference Call Keywords?
The largest cost-per-click for Conference Call keywords is $42.05.
What is the Highest CPC for Trading Keywords?
The greatest CPC for trading keywords is $33.19.
What is the Top CPC for Software Keywords?
The highest cost-per-click for software keywords is $35.29.
What is the Top CPC for Recovery Keywords?
The largest cost-per-click for recovery keywords is $42.03.
What is the Top CPC for Transfer Keywords?
The maximum recorded cost-per-click for transfer keywords is $29.86.
What is the Highest CPC for Gas & Electric Keywords?
For gas & electric keywords, the largest recorded CPC is $54.62.
What is the Top CPC for Classes Keywords?
The greatest cost-per-click for class keywords is $35.04
What is the Top Cost-Per-Click for Rehab Keywords?
The highest CPC for rehab keywords is $33.59
What is the Greatest CPC for Treatment Keywords?
The greatest cost-per-click for treatment keywords is $37.18
What is the Top CPC for Cord Blood Keywords?
For core blood keywords, the highest cost-per-click is $27.80
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