Another problem I'm facing with my adwords campaign is I'm selling a product which is giving me $5 profit per sale. The keywords I'm bidding on are expensive like I'm currently bidding $.50 still I'm not getting the first 3 spots What should I do increase the bid and then lower it down as my quality scores improve or bid only as much as I can afford in this case it would be $.10 Please give suggestions! Thanks
Increasing your CPC doesn't affect your QS. Google normalises CTR based on your position. I would only advertise up to what is profitable (10c in this situation), unless you are getting repeat customers and word of mouth which is making it worthwhile to advertise more. Try finding more longtail keywords that are not as expensive, or try the content network for cheaper clicks. You could also try other advertising networks as well.
"Google normalises CTR based on your position" Can you please explain this in a bit more detail? Thanks
As you know, CTR is used in the calculation of Quality Score. However, the position of the ad is taken into account. Obviously the ad in position one is likely to have a higher CTR than the ad in position two. Google realises this and takes this into account when calculating quality score. Here's an example: For arguments sake lets say that Google expect the CTR of position 1 to be 5% and the expected CTR of position 7 is .5%. If your ad is in position 1 and has a CTR of 4%, that is worse than if you were in position 7 and had a CTR of 1%. All other factors equal, your Quality score would be higher for the second ad than the first ad, even though the first ad's CTR is 4x as high. Hope that makes sense! If someone that is skilled in English wants to rehash that please do!
Oh that's nice to know that google takes the position of the ad when judging CTR for Quality Score Thanks for the info mate +rep given
It is all about ROI. I suggest you add Analytics to your site (it's free) and set it up for goals (conversions). Test your bids / page position and see where the sweet spot is for max ROI. It is pretty cut and dried, no need to guess.
don't bid higher than you can afford. Lower your bid to 10c and just put up with not having as much traffic, at least this way every sale makes a profit. If you find you're not making sales frequently enough setup more small campaigns for other products.
don't chase positions look at your ROI and maintain that. sometime ago i was also chasing position and with in a week my campaign gone in to negative zone.
Make sure your keywords are using in your ad variations, landing page and make sure your advert delivers with a solid CTR. I was getting 0.05c a click with a Great QS, 50% ctr and the campaign maxed out within the hour, shame I wasn't profiting!
You must provide more information as when what niche your in. For some niches, I wish I was paying 50 cents per click. In your case, it seems your making $5 per sale. Now, I'm not sure if you meant sale or lead, if you meant sale; then well there is no way you can make a profitable campaign. If you meant lead; then you want to be aiming at paying 0.05-0.10 per click. They only way to do that is if your quality score is "Great". Most likely your advertising a zip submit, something along those lines, so a landing page isn't needed. But what you must focus on is developing an attractive AD. With an attractive AD; your CTR (Click Through Rate) will increase. If your CTR increases, your position will get better, plus you'll pay less per click. To learn how to make your AD more attractive, read this blog post: http://www.googlelady.com/416/10-killer-headline-adwords-tips/