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Best Way to get Lower CPC

Discussion in 'Google AdWords' started by albern98, Feb 15, 2012.

  1. #1
    With adwords, is simple.You must bid high on the beginning, like for the top or second position.
    This way you will get more clicks (although more expensive) but you will rank better on relevancy, and quality score.

    After just a few days you will check that the minimum bid needed for a specific keyword had been lowered. For instance, let’s say you advertise on the keyword youtube. You would want to deactivate content network ads this time…


    Now let’s say that the youtube keyword minimum bid is 1 dollar. The guy on the top position is biding about $ 1.5
    You shall bid 1.55 (leave some cents margin) for let’s say, 3 or 4 days. At the end of day 3-4 you will see that the minimum bid have dropped to 80 cents. You can now lower your bid to 1.45 and still be in the top position due to quality score.


    the whole process repeats itself until the minimum bid for that keyword reaches 20 cents. This way, you can bid 35 cents for that keyword, and still be on the top position, while the other guy is biding 1.50 and in the second place.
    I’ve tested this way several times, with all keywords. Working the quality score is very important. Use smaller groups of keywords and ads and monitor closely. Remove keywords and put them into different ad groups if they do not perform to get the good ad groups well positioned. Bid higher initially to get a ‘forced higher CTR%’. Then gradually lower your bids and hope that your position maintains. But this might take weeks to slowly lower it till you’re paying real low bids & still getting good positions.


    One trick is really to tweak your Adcopy to make it look interesting. There have been documented examples, that between a well-written ad vs a unique ad, usually the unique ad wins.
    SEMrush
     
    albern98, Feb 15, 2012 IP
    SEMrush
  2. Gothrough

    Gothrough Peon

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    #2
    But I suppose you didn't mention that your landing page should be perfectly optimized for those words. Right? Otherwise you'll not get high QS.
    I heard about this technique before. Not sure if it works in 100%.
     
    Gothrough, Feb 15, 2012 IP
  3. annaharryson2

    annaharryson2 Peon

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    #3
    i totally agree with u.. thank u so much sharing with us.
     
    annaharryson2, Feb 15, 2012 IP
  4. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #4
    That is simply not true.

    You'll rank better but that won't affect relevancy or QS. Quality Score is normalized to position. So if your ad is poor (lower CTR) compared to competitors, your QS will be poor. Best is to get your QS at 7 or more before shooting for top positions, unless you don't care spending more.

    As minimum bids is a function of QS, doesn't mean it will go down. In fact, it likely will go up with a poor QS.

    You say "the guy on the top position is biding about $ 1.5". There's no way you can know what the guy on top or any other guy is bidding. You can infer based on your own data but you can never know for sure and it can change.

    I'm not sure what your definition of minimum bid is. I think you may mean the estimated bid to be in top positions as reported by the keyword tool. If so, that estimate uses an average QS and you can easily beat that estimate with a higher quality ad. Minimum bid as shown in Adwords is the minimum you'd have to bid to be on the first page (up to 11 ads) based on YOUR QS.

    Your whole process is flawed. It won't work unless you increase your ad's quality, ie QS. There's no guarantee that the cost or bid to be on top will go down. You're talking about minimum bid so it in fact won't.

    The only good thing you say in the post is to work quality score. Nothing is going to happen if you don't try to improve QS which means improve CTR on ads. But that "forced higher CTR" is just plain wrong. It doesn't work like that. As said earlier, QS is normalized to position.

    For the straight dope on QS, read Adwords FAQ.
     
    Lucid Web Marketing, Feb 15, 2012 IP
  5. jacob26

    jacob26 Peon

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    #5
    I thinks so you should follow these 4 steps.I am able to succeed by follow this rules.

    [h=3]1. Use Long Tail Keywords
    2.Research uncompetitive theme.
    3.Use Modified Broad Match
    4. Be Relevant
    [/h]
     
    jacob26, Feb 15, 2012 IP
  6. pankajdahiya28

    pankajdahiya28 Peon

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    #6
    Nice post, totally agree with you.
     
    pankajdahiya28, Feb 23, 2012 IP
  7. nelson1234

    nelson1234 Peon

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    #7
    i like this.........
     
    nelson1234, Feb 23, 2012 IP
  8. jess17snyder

    jess17snyder Peon

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    #8
    one question about this technic, when you bid high, e.g. at $1.5, and second position is only $1, how much you really pay for 1 click, is it $1.5 (what you bid), or some thing less (since second position is only $1).
     
    jess17snyder, Feb 25, 2012 IP
  9. M8INTERNET

    M8INTERNET Member

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    #9
    AdWords calculates the cost based on many factors
    The projected costs per click can be seen from the Bid Simulator
    If you have set $1.50 as the maximum then that will be the maximum paid, however the actual amount can be anywhere from $0.01 to $1.50

    I am not aware of any technique that forces your advert into position 1, as above there are many other factors to consider
     
    M8INTERNET, Feb 26, 2012 IP
  10. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #10
    What you pay is based on your QS as well as the QS and bid of the advertiser below you. Simplified, the formula is:

    cost = QS(a) / QS(b) * bid(b)

    where QS(a) is your QS, QS(b) is the QS of advertiser below your and bid(b) his bid.

    In your example, we don't know the QS of your competitor. You don't mention yours either. In the real world, you don't even know his bid, although you can make some guesses but you never really know for sure. Let's assume your QS are the same, you pay whatever his bid is or $1.

    That's why QS is so important. It determines your ad's ranking (QS times bid) and your costs. Again, this is simplified. QS for example is not a real number but a number with many digital places. You just see it rounded off so it's not QS of 7 but maybe 7.4278179. Those decimal places will create huge differences in the calculations.

    If your QS is actually 7.63 and your competitor is 9.28 bidding $1.50 (doesn't matter what you bid), the calculation comes to $1.82. Since that's more than the $1.50 you are willing to pay, you'll pay close to your bid.

    If his QS was only 7.22 and still bidding $1.50, you'd pay $1.42. But if your QS was higher, say 8.56, you'd pay only $1.27, $0.84 if he was bidding only $1. You could play with the numbers all day but the bottom line is, the only thing you can control is QS and your own bid. Increasing your QS is more advantageous than managing bids.

    On forcing you ad into first position, it is possible depending on certain conditions. First position is normally above the SERPs. To be there, you need a minimum QS of 7. You can bid all the money you want which by the ranking formula would put you there but if your QS is not high enough, you'll never get that position. If you have a QS of 7 or more, you'll simply have to bid enough to outrank competitors.

    That's why the OP is flat wrong. Bidding high does not guarantee high position. And while CTR is a huge part of QS, it's not absolute CTR, rather it's compared to others normalized for position. Your QS is not going to change just because your CTR is higher in one position over another, that's normal. Your QS changes because, for that position, your CTR is higher compared to theirs. Everybody's CTR normally moves up higher the higher your position. So relatively, your QS will remain the same.
     
    Lucid Web Marketing, Feb 26, 2012 IP
    shuvo likes this.
  11. ahmedbk90

    ahmedbk90 Greenhorn

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    #11
    thanks for best information
     
    ahmedbk90, Mar 9, 2012 IP
  12. shuvo

    shuvo Active Member

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    #12
    Quality score is always an important issue when you work with networks specially with adwords.However its interesting that the CPC get lowered after some initial high bidding.
     
    shuvo, Mar 9, 2012 IP
  13. EnhanceSEO

    EnhanceSEO Active Member

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    #13
    QS is important but have you tried a combination of exact, phase and broad match modified keywords?
     
    EnhanceSEO, Mar 10, 2012 IP