CPC is way too High?

I tried to create an adwords campaign regarding the iPad. I set CPC to .50 per click, and got no clicks for a week. I changed it to Automated CPC, and left it for a few days to find out it set to 7 dollars and spent all the money in my Adwords account. Is the CPC average seriously 7 dollars? Or did I do something horribly wrong?

 

I would not be surprised if some iPad keywords go for that much. Your QS will determine how much you pay. If it's low, you will pay more. So the question is, what's your QS? If it's only 5 or 6, you could pay that much. It might be half that or less if you reach a 10.

It seems you are just starting with Adwords. I suggest you learn because I'm betting you are doing a few things wrong like bidding on wrong keywords, not knowing about match types and probably a few other things. Using automatic bidding will do just that and bid for you to get the highest position.

 

Don't be cheap with .50 per click, in order to learn you should spend at least $1.00 per keyword while limiting the # of keywords you choose. I tried automatic bidding at first to and learned how Google determines bidding automatically. I'd say set CPC at $1.00, turn automatic bidding on for a week or 2 and watch what happens. Afterwards, once you understand/have more data switch to manual bidding. Sometimes you have to lose some money to make more down the road...good luck!

 

Thanks for the help guys! It possibly might be my keywords, Im going to revise them and see if i can profit better on my PPC Campaigns. I'll try to raise my Manual CPC to atleast a dollar next time. I appreciate the help.