Why Google cPPC is getting expensive?

Discussion in 'Google AdWords' started by keppel, May 13, 2012.

  1. #1
    Do you notice that adword PPC is getting expensive? I keep thinking, finally I get to know that, webmaster and SEO are key factor to increase the value of keywords.

    We know that anchor text can boot up SERP, when world webmaster is keep produce content and anchor text, competition for the particular keywords is keep increasing. End up adword campaign is getting expensive.

    What do think?
     
    keppel, May 13, 2012 IP
  2. Nagato

    Nagato Peon

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    #2
    To avoid losing money in your ads, you surely need a team (or at least a professional freelancer) to be always above them and take care of them.
     
    Nagato, May 14, 2012 IP
  3. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #3
    Actually, no, I don't notice PPC getting more expensive. I don't get the point you're trying to make. But the factors that will affect your costs are your QS (maybe yours is going down) and competitors bidding more. If your QS is healthy and going up, you're costs will not go up very much in general and should be fairly stable month to month.
     
    Lucid Web Marketing, May 14, 2012 IP
  4. qwikad.com

    qwikad.com Illustrious Member Affiliate Manager

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    #4
    But wouldn't you agree that just like in every other area of our lives, if the economy goes down AdWords will react to it negatively, meaning their costs are bound to go up. Or not?
     
    qwikad.com, May 14, 2012 IP
  5. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #5
    For some reason, people think of Adwords and other PPC as a thing that adjusts itself according to conditions. It's not. At least, not in the since that a piece of software code that decides it will increase or decrease costs. The whole thing is self-sustaining and simply reacts to data provided to it by advertisers. So if advertisers decide to increase bids, the system is going to calculate a certain cost and that cost will raise in this instance. Those with high quality ads will not see as much of an increase as those with lower quality and more often than not, those lower quality advertisers are the ones increasing their bids.

    If you believe your theory of slower economy, then it seems to me that costs should go down. Shouldn't there be less advertisers? Therefore, less with lower quality (although it's debatable overall quality would increase, I don't think it would), less with higher than market value bids which should result in a decrease in costs.

    I've lowered costs of clients in all kinds of economies so the theory doesn't hold water. And my own theory goes against yours when you think about it. So the economy has no effect.
     
    Lucid Web Marketing, May 14, 2012 IP
  6. Luckydude

    Luckydude Peon

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    #6
    My ad center Ppc costs have gone up in the past year as well. I thought it was just competitiveness increasing
     
    Luckydude, May 14, 2012 IP
  7. lorraine02

    lorraine02 Member

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    #7
    yes, our company are focusing on this point. and the effect is not better than before.
     
    lorraine02, May 15, 2012 IP
  8. perfectionsu

    perfectionsu Peon

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    #8
    I hear this all the time from potential advertisers that want to know what they’re getting into before committing to an AdWords campaign, “how much does it cost?”
    It’s a hard question to answer because no two AdWords accounts are exactly alike. An easy answer would be to simply say, “As much as you want to spend” given that you set your own daily budget, but most people aren’t satisfied with that.
     
    perfectionsu, May 19, 2012 IP
  9. qwikad.com

    qwikad.com Illustrious Member Affiliate Manager

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    #9
    I think you are missing the point when you say "Should the cost go down because of slower economy". It goes down in some areas but in some other areas it goes up. For instance, the housing market in the US is at its lowest and as a result you can buy a decent looking house for less than its original worth. On the other hand, because people do not buy brand new cars as much anymore, the cost of the used cars went up. A junky looking car can go for as much as $3000-$5000.

    Since this is the case, the logical conclusion will be the CPC for both real estate and used cars will go up. Yes, granted it is because now both real estate agencies and car dealerships are competing more to get everything they can out the economical turmoil, however, it is the economy that is driving that unnecessary competitive edge and increasing the CPC.
     
    qwikad.com, May 19, 2012 IP