Cost-per-acquisition is the only thing that matters when it comes to bidding costs on a given PPC platform. With everyone still feeling the residual financial effects of the pandemic, advertising costs have increased exponentially for some industries and decreased for others. CPM stands for cost per “thousand”, where M is representative of the Roman numeral for 1000 (1000 impressions). However, high-end restaurants with higher profit margins tend to see more competition in the advertising world and, therefore, higher costs for specific search phrases (luxury restaurants, best restaurants).
Cost per action or cost per acquisition, but as you see, the exact definition of “share” will vary by business. And if your average cost per acquisition isn't close to your margins, bidding higher means getting more conversions with hardly any additional cost. Cost-per-thousand inevitably means paying for an indefinite number of page impressions from people who ignored the message. Cost-per-thousand is good for brand recognition and product awareness, assuming that page visitors at least see the logo and, albeit unconsciously, absorb the message.
We generally expect advertising costs to increase over time, but the average search network CPA is lower now than it was a couple of years ago. Google advertising costs, for search and display ads, vary based on industry, current trends (such as the COVID-19 pandemic) and customer lifecycle. Now that you have an idea of how much a single conversion costs for your business, it's time to analyze what your bottom line is. Advertisers generally won't be willing to bid huge amounts that could sabotage their acquisition costs.
For most Google advertisers, the cost per lead or customer acquisition will not exceed the bottom line.