CPC is up by 50%

Discussion in 'Google AdWords' started by skuba, May 13, 2009.

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  1. #1
    Guys, I have been running report for some of the campaigns I manage. Most of them are in retail. And I have been seeing a 40% to 50% increase in CPC rates for the same time period last year. For example, March 09 compared to March 08.

    It's not a matter of optimization, let me explain why. I have been always optimizing. The conversion rate for all these campaigns are way up. The quality scores are up too.

    So how come the CPC just keep going up?

    Are you guys experiencing something similar?

    Thanks
     
    skuba, May 13, 2009 IP
  2. gjhamilton

    gjhamilton Peon

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    #2
    Maybe more competition? More people advertising using the same keyword.
     
    gjhamilton, May 13, 2009 IP
  3. skuba

    skuba Member

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    #3
    Have you noticed it too for any of your campaigns? Anybody else?

    Thanks
     
    skuba, May 13, 2009 IP
  4. peaker

    peaker Peon

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    #4
    Things have been steady for me, but it sounds like there are more people jumping on the keywords, what is the competition stats on your keywords like?
     
    peaker, May 14, 2009 IP
  5. smit123

    smit123 Peon

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    #5
    This happened to me about a year ago, no idea why. Couldn't get an answer from google and no amount of optimization changed it. In the end I changed ads and keywords to something totally differen't. It made things better but not how they used to be.
     
    smit123, May 14, 2009 IP
  6. harrison227

    harrison227 Peon

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    #6
    Hey Peaker,

    This could be a direct result of your quality score and click through rate. Google rewards users advertisers for ads that have a high click through rate. If your rate is low (less than 2%) they will usually raise prices. You should also check out the quality score of your ads - that has an impact as well.
     
    harrison227, May 14, 2009 IP
  7. JHardy_WV

    JHardy_WV Peon

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    #7
    If you're saying it's not due to optimisation the I presume your QS and CTR is as good as it was a year ago?

    Been to a few PPC conferences lately - essentially the market is getting more competitive. Marketing departments are now demanding more measurable ROI - which increases competition on adwords. On top of this, more people are getting smarter with their adwords use - means more people have better quality scores - so more competition - cpc increases.
    The rate of increase will depend on how profitable the phrases are (more profitability = more attraction = more competition = lower profitability!), and also on your industry...
     
    JHardy_WV, May 15, 2009 IP