Should You Target High CPC Keywords? Pros and Cons

When managing paid search campaigns, one of the most important decisions digital marketers face is whether or not to target high-cost per click (CPC) keywords. High CPC keywords are often highly competitive, associated with high-value industries, and can be incredibly expensive. However, they also carry the potential for significant returns on investment (ROI). The key question is: should you target them?

In this blog, we’ll take a deep dive into the pros and cons of targeting high CPC keywords, and help you decide whether it makes sense for your business and digital marketing strategy.

What Are High CPC Keywords?

Before we dive into the pros and cons, let’s define what high CPC keywords are. CPC is the amount an advertiser pays every time someone clicks on their ad. High CPC keywords are those that are particularly competitive, meaning a lot of businesses are bidding for the same search terms. These keywords often correlate with industries where each customer or conversion is extremely valuable—like finance, law, or healthcare.

For example, keywords like “best mortgage rates” or “personal injury lawyer near me” might have a high CPC due to their competitive nature and the value of the potential customer.

The Pros of Targeting High CPC Keywords

High Intent Leads and Conversions

One of the biggest advantages of bidding on high CPC keywords is the likelihood of reaching highly qualified, high-intent leads. Since these keywords tend to align with users who are in the decision-making or buying stage, they’re more likely to convert into customers. In other words, these clicks often come from people who are already primed to make a purchase, schedule a consultation, or take some other valuable action.

For example, someone searching for “buy custom-built computer online” is likely further down the sales funnel and more willing to make a purchase.

Higher ROI Potential

Although the cost-per-click is higher, targeting the right high CPC keywords can result in a greater return on investment (ROI) if you’re able to convert those clicks effectively. If your product or service has a high lifetime value (LTV) or offers a significant return from each conversion, it may be worth paying more per click.

For instance, a law firm may pay hundreds of dollars per click for terms like “divorce attorney,” but the value of acquiring a single client can justify the higher cost, given the potential revenue from the case.

Increased Visibility and Brand Authority

Ranking for high CPC keywords often means you’re appearing in highly competitive search results. This can increase your brand's visibility and credibility, especially if you're appearing alongside well-established competitors. Over time, this increased exposure can help establish your brand as a leader in your industry.

Think about it—if you’re a small company and can afford to compete for premium keywords, it signals to users that you are a serious player in your niche.

Competitive Advantage

By targeting high CPC keywords, you can potentially outrank competitors who are targeting the same search terms, especially if you have a larger budget or superior ad copy. Even if you're a smaller player, bidding on these terms could give you a competitive edge if you have a well-executed strategy.

The Cons of Targeting High CPC Keywords

High Costs and Budget Constraints

The biggest downside of targeting high CPC keywords is the high cost. These keywords are often highly competitive, meaning the cost per click can easily run into the hundreds or even thousands of dollars, depending on the industry. If you’re working with a limited budget, it could be difficult to sustain a campaign focused solely on high CPC keywords without burning through your resources quickly.

For example, in competitive industries like insurance or finance, bidding on keywords like “best car insurance” can drain your advertising budget fast, especially if the conversion rates are lower than expected.

Increased Competition

While high CPC keywords often have higher potential returns, they are also more competitive. You're not the only business bidding for these terms, which means you’re constantly going head-to-head with competitors who have larger budgets and more resources. In highly saturated markets, this can lead to a bidding war, driving costs even higher and reducing your potential ROI.

If your competitors are more established or have more optimized campaigns, it could become difficult to outbid them consistently.

Lower Click-Through Rate (CTR) for Expensive Keywords

Despite paying a premium for high CPC keywords, you may experience lower click-through rates (CTR) if your ads aren’t optimized properly or if the user intent doesn’t align with your offering. A higher cost doesn’t necessarily guarantee more clicks, and if your ad copy or landing page doesn’t resonate with the target audience, the results may not justify the expense.

For example, if you're bidding on a high CPC term like “best lawyer in [city]” but your ad copy doesn’t highlight your specialization, your ad might not get the same level of engagement as your competitor’s more compelling offer.

Unpredictable Conversion Rates

While high CPC keywords typically indicate high intent, it’s not guaranteed that all clicks will result in conversions. If your product or service doesn’t deliver the right solution for the searcher’s needs or if your landing page isn't optimized for conversions, your cost-per-conversion can become unsustainable.

For instance, in highly competitive markets like legal services, potential clients may click through to many firms before making a final decision, meaning your click might not result in a lead after all.

Short-Term Focus and Less Sustainable

High CPC keywords are often focused on short-term results—meaning you’re paying for immediate visibility rather than building long-term, organic traffic. While paid search can generate quick results, it can be harder to sustain if your budget isn’t consistently large enough to keep up with the competition.

For businesses looking for sustainable growth, relying heavily on high CPC keywords may divert attention away from long-term strategies like organic SEO or content marketing.

When Should You Target High CPC Keywords?

Targeting high CPC keywords can make sense for certain businesses, especially those in industries where each conversion has significant financial value. However, there are a few scenarios where targeting these keywords could be especially worthwhile:

You Have a High Lifetime Value (LTV): If your product or service is expensive or provides long-term revenue from each customer (like in real estate or high-end legal services), investing in high CPC keywords might pay off over time.
You Have the Budget: If you have the resources to sustain a paid search campaign without stretching your marketing budget too thin, you can afford to target high CPC keywords as part of a broader strategy.
You’re Focused on Brand Visibility: If you’re aiming to establish your brand as an industry leader, targeting high CPC keywords might make sense for long-term brand-building, even if the ROI is lower initially.

When Should You Avoid High CPC Keywords?

On the flip side, targeting high CPC keywords may not be the best move if:

Your Budget is Limited: If you're working with a tight budget, you may not be able to compete effectively for expensive keywords, and could get better results with long-tail or less competitive terms.
Conversion Rates Are Uncertain: If your sales funnel or conversion process isn’t finely tuned, you may struggle to convert high-cost traffic into paying customers, making it difficult to justify the high CPC.
Your Competitors Have a Bigger Budget: If your competitors have significantly deeper pockets and stronger campaigns, it may be hard to compete effectively, and you could end up spending more than you can afford without seeing meaningful returns.

Conclusion

Targeting high CPC keywords can offer significant rewards, but it also comes with notable risks. It’s a strategy that can work wonders for industries with high-value conversions and a solid marketing budget, but for those with limited resources or uncertain conversion rates, it can be a costly gamble.

Before diving into high CPC keywords, carefully evaluate your business’s budget, goals, and ability to convert traffic into meaningful results. For some, focusing on high-intent, long-tail keywords or a balanced mix of organic and paid strategies may offer a more sustainable and cost-effective approach.

Ultimately, the decision to target high CPC keywords comes down to understanding your market, your resources, and the potential return on investment.