Way to be totally useless Here bud, read this: http://adwords.blogspot.com/2006/01/common-adwords-misconception-explained.html
The reason being, it's more your quality score and ctr that determines the minimum bid. It's their way of getting you to pay more even if nobody else is bidding on the keyword. They've got some big brains working at google and are determined to nickle and dime you out of every penny they can. That's what the quality/profit score is all about.
So if your QS and relevancy of your add to thoese keywords is top notch, then you can expect to pay little for CPC. Also how long does it take google to calculate your QS, is it a automated process which is done instantly?
Your quality score is an automated process that is continually updated. Once you have set up your campaign effectivly keep an eye on the click through rate (CTR), run a couple of advert copy variations and keep improving the lowest performing, this should all help to reduce your min cpc (improve your quality score).
Your CPC cost will go down after time. Keep improving your ads, but honestly as time goes by your CPC cost will dramatically go down. For example let's say your bidding on the first page and you have a higher CTR then all your advertisers, but these are new keywords your using. Well guess what you'll probably be paying way higher then they are, but if you let your campaign run after time 3-4 months constantly you'll notice your avg. cpc cost keep going down. Guess why affiliate sites are bidding on keywords like credit cards, and many other highly competitive keywords becuase there making a fortune off it, but guess what they probaly have had the same ads for a long time.
Lots of those keywords out there with no takers. You may start with a high cpc, but it will trend down over time. Only problem is your competition will likely sniff the new keywords and be joining you shortly. Good luck. -Patz
no... google will still apply a value to a keyword. maybe there is no competition because its a brand new product or company So google will assign a value. Sometimes its only .05 per click... sometimes a little higher Sometimes google doesn't like certain industries and keywords, so they will raise the cost per click on those as well
Robert, They'll probably assign the CPC cost pretty high since its a new keyword list right? Until it gets some history built up.
I don't know from my experience click cost alway start out high. I had one campaign that started out extremely high and never touched the ads, but the cost has went down HUGE time. Another example would be shoemoney he was discusses on webmaster radio how he had one campaign that he never touched the ads on for over 3 months, but his click cost went down from 1.50 to 10 cents a click by just spending. I think A / B testing and CTR is highly important of course, but I think the single biggest factor is spending.
its not spending, its time and history... I explained this in the past that google waits out new accounts and websites for a period of about 3 months to ensure they are going to be real players in the market. Therefore if you stick around long enough you can experience a significant drop withing a 3 month period... There is no dollar amount for this, if you put your budget at $10 a day and wait it out, you will get the same effect as spending $1k per day...
Interesting.... So your telling me I'll get the same effect spending $10 dollars a day over a 4 month period as what I would spending 6k a day? Also the account I'm referring to that went down from 1.50 to 10 cents a click happen over a 6 month period.
yes time is more important than spend... Why? because spending 6K per day may be you just exploiting a hot new trend, vs being a long time valuable advertiser... 3 months was just the case study I quoted, we also agreed that continual drops continue over the lifetime of the account
I'm going to test that and see what happens. I'm going to set it at $20 per day over the course of 1 month and see what it does. I have noticed my CPC cost going down big time with out even touching the ads which granted I'm getting high CTR I'm pretty sure its higher then my competitors. The reason I say that for is because its a comparison site and I just know I could be wrong, but I do have a good sense for that stuff if you know what I mean.