Tripling the budget also tripled the CPC (????)

I tripled a campaign's budget and it literally just tripled the CPC! I even have fewer clicks. I was using the Maximize Conversions bidding strategy. It was working great for the campaign. I went in and changed the bidding strategy to manual CPC and put in the old CPC as the maximum.

Does anyone have any idea why this could be happening?? WTF!

 

This user makes sense to me: https://www.reddit.com/r/PPC/comments/nj1a7y/does_cpc_increase_as_budget_increases/

Quoting:

MakeCoffeeNotWar234

Yes, increasing spend will likely result in higher CPC.

There is a limited pool of people in your audience, and the algorithm is choosing the cheapest prospects from the pool based on your budget (+ subject to target objective). Now if you increase the budget, your ads will have to reach more people, thus reaching the less efficient users that were not targeted before from your audience pool.

Another potential reason for higher CPC would be lower CTR as a result of higher frequency with an increased budget. You might be targeting the same people more often, leading to ad fatigue and fewer clicks, as they have already seen and clicked on the ad.

Since your objective is ROAS, CPC would be your secondary metric. Nevertheless, you will be less efficient with a higher budget so your ROAS will go down, but in the end, you will generate more revenue. Whether you remain profitable will depend on your targets and break-even point.

 

THANK YOU! I think this might be the case. I'm doing some testing and have moved that budget to a campaign that has a higher CPC.

 

This is something that i saw in last week, when i increase the budget the cpc also increased, same thing i did by changing the bidding to manual cpc then revert it back. I am confused now what do, what is better the CPA or the Manual CPC what to select.