What is the cheapest you pay for keywords?I can't seem to find any below 30 cent despite my best efforts, is this normal? The other day as well it said most were 5 cent but then the next morning it listed them all at 30/40 cent agin
Depends on a variety of factors - the main one is niche - one I work on gets good keywords for 5p (about 8 cents), another it's more like £1.50 (over $2) - then the factors of your own ctr come into play. If the price keeps going up it's probably because your ctr is bad
When I search the words in google a lot of them only have one or two ads at the side surely this means they should be cheap?
you need to improve your quality score... learn more about that at: http://adwords.google.com/support/bin/answer.py?hl=en&answer=10215
Not really. Sometimes it is depends. What i can say is, do more research and you will find cheaper one.
Keywords are like any other commodity really. It's a question of supply, demand and what others are willing to pay for that lead. Most advertisers not realizing this and not knowing much about economics or advertising tends to drive up prices. However, there are plenty of keywords that can be had for 30 cents or less for the smart advertisers, not necessarily for top spot mind you, but they are there. > a lot of them only have one or two ads at the side surely this means they should be cheap? No. You still need quality and if you don't have it, Google will ask for more money, even for the last spot among a handful of advertisers. If you want top spot, what others bid will affect your costs. I'm working on a document to explain all this. Will post link when its done.