Im new to Google Adwords... Does CTR effect CPC?

Is Cost Per Click determined by what the competition is bidding?... or does it correlate to your CTR?


Thanks!

- Fbos

 

Both.
If the competition is generally bidding around $6 in your niche and you're bidding 6cents, then your ad may be shown, but buried on page 7 of search results.
But Quality Score makes up a large part of the price as well as competition, and ctr is a large part of Quality Score.

 

I agree with Magda. If your competitors are bidding high amount, you will have to pay high to get on the first page. Quality score is one thing which can help little in lower cpc, but there is minimum big which you need to pay to be on the first page.

All the best!

 

Google showed their formula (not all the details, but in general) in a video, can't remember it exactly but its something like:

CTR*bid=X

Sort ads by x descending

So the higher the CTR the lower the bid can be for the same place, but if a competitor bids high he can bit you with lower CTR, and than you must raise your bid...

 

Yes CTR affects CPC so be careful.

 

As some of the others have already touched on CTR plays a big part for the QS (Quality Score)

Quality Score x CPC (Bid) = Rank

Rank (of advertiser below you) / Quality Score (yours) + 1p (or currency) = CPC

Quality Score = CTR, Relevance (advert text, landing page), other elements

Hope this helps?

 

So technically, you can manipulate your CTR by clicking your own advs?

 

Google has sophisticated click fraud detection. That would definitely be detected. At best - not counted - at worst - suspension of account.

 

Yes Both. But don't click your own ads. They do get you. It might take them a little, but they monitor.

 

The added problem of bidding low is that your Quality Score will sink quickly. Then you'll start seeing the classic "keyword not relevant" (for the QS details) even if the landing page and load time are both fine. Finally, it'll end up being $10/click for 1st page viewing.
The best thing to do is bid for 1st page spots initially to see if you can get some click-throughs; if you can't get them immediately, tweak the ad and/or landing page. In the end Google wants to see click-throughs...

 

Yeah im not going to click my own ads

Here's whats going on though:

Im bidding like $20 a click.....

And right now it says default bid 80 cents

The other day it was 61 cents

Before that it said like 40 cents

Any idea whats going on here?

Also, my CTR is like 2.4% .... is that good????

 

Does your default MAX BID say .80 or 20.00?

 

Bidding $20 / click is way too much. As you are saying that minimum bid is $0.80, if your quality score is good, you can be on top for $1.00 max. The default max bid can change over time according to the bidding of your competitors.

 

Im not sure whats going on...

First my default bid was around $.30 cents

I set it to $20 because I just want to outbid everyone

Thing is..... the default bid went up to 60, 80 cents.. and is NOW at $1.30

Does this mean my ads are geting more expensive? If so... why???

 

They get more expensive for usually 1 of 2 reasons; the competition is heating up, or your CTR is too low. What's your CTR look like?

 

My CTR is 3.05%

Total - all keywords

410 clicks

13,436 impressions

3.05% CTR

$1.06 Avg cost

$435.35 3.2 total cost



How does this look???

Thanks!!

 

Yes CTR is correlates to CPC more clicks=less money you pay

 

The CTR is important factor when it comes to the CPC... The higher the CTR, the lesser the CPC. Your page QC also is important. You cannot have ads which have high CTR with page which has a very high bounce rate.