High CTR, reducing cost per click

Hi Everyone.


I've just started running an ad groups.
I've got 28 related keywords.
And am split testing two ads together
I'm paying .40 per click on every keyword,

Some keywords have no impressions and no click,
Does this mean i should be adjusting my cost for each keyword?

For Example
one in particular has had:
clicks 4 > impr 11 > CTR 36.36%
Does this mean i can set my cost to 0.30p instead of 0.40
and still get the same postion?

How high does your CTR have to be before you can reduce your CPC?
OR does google do this automatically?

Thanks for anyone who can shed some light on this.

jeff

 

Jeff,

CTR doesn't directly lower your costs. What is does is to allow you to attain a higher ranking for your bid. It is this higher ranking that allows you to generate more clicks at the same cost or the same clicks at a lower cost than your competitors.

 

OK, Thanks.

But is it not posiable to lower my cost and stay at the same position?
If i have a high CTR, can i not then lower my CPC?

Thanks

 

Spires,

yep, you can. My advice it to test different advertising copy, one line at a time, and gradually refine your campaign.

 

Cheers mate.

One last thing, how high should your CTR be before you should reduce your CPC?
Is there some set formular
e.g:
if you have 20 clicks, and a CTR of 20%
is this good enough to then lower your CPC

OR is it just a caes of keep testing

Thanks

 

Spires,

the key is competitive performance. If you're achieving 20% CTR and your competitors 19% CTR you will rank above them for the same value bid. However, you can only guess at your competitors CTR. I would have a stab by analyzing their copy against specific terms. Generally the more bold and the more the bold is spread out the higher the CTR. In addition you need to find the "trigger" words in your market category. These are the words that turn on potential click prospects.

 

Ok, Thanks for all your help.

I'll go try it out.

 

My approach looks at things the other way around. I decide where I want to be in the search results (see my blog on the epiphanysolutions.co.uk website for how I decide this), and then bid accordingly.

I then adjust my bids on a keyword by keyword basis in order to try to achieve this position. If keywords are performing particularly well or poorly, then I adjust the bids accordingly.

If I see a significant improvement in my clickthrough rate from advert optimisation, I recalculate my desired position, and adjust my bids to achieve this.

 

Thay sounds like a cool methord.

Thanks