Am a noob, I was researching a new vertical. When I looked at ad positions for a set of keywords for many keywords the Google Keyword tool showed ad positions 1-3 for a max CPC of $0.1, with an average CPC of $0.05 - 0.08. When I changed the max CPC to $1, for the keywords which gave 1-3 ad position, the avg CPC went up to $0.89, while the ad positions remained the same. How come the average CPC goes up, if the ad positions doesnt change? Now I couldnt make sense of this, could someone explain? If this has already been tackled earlier my apologies. I didnt find an answer when I searched. Thanks a ton.
Ignore the keyword cost estimation tools - they are in my experience far from accurate. If you want to get real data that means something set up a samll campaign and run it for a bit - even after only a few dollars in clicks you'll have more accurate estimates to base future plans on than the keyword estimation tools will ever provide.
Look at it from Google's perspective. You use a tool that is going to decide whether or not you will give a phrase a stab or not. Would you lower the barrier to entry?
Thanks for the feedback. I assumed that Google's data would be accurate. Coming from a company whose motto is "Do no evil" one expects better