Lowering ad Words Campaign Costs

Hi

I was talking to a competitor of mine and he told me I should start doing ppc. I do very, very well organically. Most important here is he said that initially my cost for ppc will be very expensive but after 6 months of solid ppc advertising google lowers my cost of advertising. For example he says:
His cost for a ppc term is now only .60 cents for the #1 position where my cost for the same #1 position would be $3.60 because I am a newbie. Is this true. That over a 6 month period google lowers the cost of ppc to their big spenders - and what is the definition of a big spender to acheive this great savings over time?


Jayden

 

Interesting point I've been doing PPC advertising with Google for about a year now and i've only seen a slight difference in pricing in that time. Must be the niche that you're in.

 

The correct answer is YES.

Initially your cost is going to be much higher for your desired position and that is because of your quality score.
There are three major components that make up your quality score, the most important is the Historical Click Through Rate. Since you don't have any historical data, you end up paying higher in the beginning and as historical data becomes available, your cost per click decreases as well.

Other factors that may influence your CPC include the relevance of your keyword to the ad copy and the landing page content.

Google: quality score to learn more.

 

Interesting that a competitor would give you this kind of advice..after all, it's only going to raise his cpcs across the board if your bidding on the same terms. It is all true what the competition is telling you, but I would take some of the ongoing advice your getting with a bit of apprehension. Friendly competition never hurt anyone, but it only goes so far

 

The general idea is you start by bidding high to get you in a higher position (thus increasing your CTR).. then eventually over time since your CTR is high your CPC will get lower

 

I compete with my friends on PPC and we share information all the time. It just levels the playing field for us and we get to keep the top PPC real estate between us.