Average cpc on its own cannot tell you whether your Google Ads account is doing well and it should not be used as a primary key performance indicator. 

A single click may seem expensive, but its value to your business could be immense. Conversely, a cheap click might not be the right kind of click, offering no benefit to your business.

How average CPC is determined

Average CPC can be utilized to observe trends within a single campaign type. An upward trend in your average CPC might indicate normal CPC inflation, or, if more significant, it could point to a decline in ad relevance or Quality Score.

Action plan for a Google Ads account with a rising CPC

1. Monitor your quality score trends - if it's declining, then it means you're paying more for clicks on average. 

2. You can then examine the quality score factors that’s affecting your average cpc - either ad relevancy, expected CTR or landing page experience.

3. Create new ad copy to improve your CTR & use all the available ad extensions to assist with CTR.

4. Review your landing page and improve its relevancy to search users.