Is this Typical?

Discussion in 'Google AdWords' started by geezer466, May 26, 2008.

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  1. #1
    I have a keyword that I have been running now for around 3 weeks . It is marked up as Great with a minimum bid of £0.03.
    I am currently bidding £0.12 and for 83 impressions today I have achieved 8 clicks so 9.63% ctr. Average cost is £0.10 per click..
    It tells me I have an average position of 7.9

    I remain happy with my ROI but wonder what it could be if I can get back into the sweet spots at 2, 3 or 4.

    I know the quickest way for me to achieve that is to raise my keyword bid to what google decides appropriate to land me in those positions. In certain circumstances I could/would do this but my service is in shall we say a short expendable supply cycle so I cannot remain exposed to high for too long as I will simply be wasting advertising £££.

    Is this sort of range for what is a very popular keyword and one that would be used by probably 90% of people looking for my service typical?

    Clearly google likes me as I can get and keep a good CTR and it rates my quality score as high.

    Under these circumstances and against what is probably fierce competition for the keyword(s) can I ever expect to get cheaper clicks or do the professionals think I have beaten it down to pretty mush as low as I can get it without losing ad position or overall exposure.

    As always many thanks for all considered reply's.
     
    geezer466, May 26, 2008 IP
  2. yyyk9

    yyyk9 Peon

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    #2
    I would think that a $.20 cpc is as low as you can get. While you need to achieve a greater quantity of clicks in order to pay less for a higher position.
     
    yyyk9, May 27, 2008 IP
  3. fl1guy2

    fl1guy2 Peon

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    #3
    wow. i wish that i could have .12 cent clicks
     
    fl1guy2, May 28, 2008 IP
  4. geezer466

    geezer466 Peon

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    #4
    12 pence sterling about 20 cents I suppose at current exchange rates.
     
    geezer466, May 28, 2008 IP
  5. robertpriolo

    robertpriolo Peon

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    #5
    Assuming the following...

    If you raise CPC your conversion ration remains the same but volume increases exponentially

    Would the raise in CPC cost be worth it? Is it still profitable...

    Example

    83 impressions a day at 10% CTR = 8 clicks and assume a 10% conversion ratio thats 1 sales per day costing you $0.96.

    Lets assume you raise CPC to $0.50

    impressions go to 1,000 per day at 10% CTR and 10% conv ratio at $0.45 per clicks. Thats 100 clicks and 10 sales at $45 or $4.5 per conversion.

    Is the ROI still profitable and bottom line increase by volume?

    If so, then it may be worth the increase
     
    robertpriolo, May 28, 2008 IP