Just trying to find out about something. Is it true if I had a long tailed KW w/ a quality score of 7 - the cost of it should be a lot lower? For an example - one KW phrase I'm using in one advertisement is "Credit Card Processing for Small Businesses". This niche gets very low traffic but can get a high conversion rate. Google is saying it will cost me $24 per click to be advertised on the first page. I know that credit cards phrase is very expensive - but I thought it would be a lot less since it's a long tailed - or am I completely wrong? Also - I used the match type [Credit Card Processing for Small Businesses] - it will cost me the same per click. Wondering if someone can help me here...
It seems like it would cost you more since you are paying per click, and per CLICK you are going to get a higher conversion ratio vs. just "credit card".
If you can get and keep a high click through rate than your costs will come down dramatically. You may have to lose money initially to game.high click through rate though. That's the hard part.
A sub question you might have asked is that are long-tailed keywords generally less expensive. The answer is that it's all about the competition and conversion of the keywords. If a keyword converts well and the competition naturally would be stronger, hence you would definitely pay more for it. Likewise, if a keyword has high search volume and yet low conversion rate, then the keyword would still be cheaper as compared to the example you have just given.