Minimum default bid

Discussion in 'Google AdWords' started by noniman, May 31, 2006.

  1. #1
    Hi everyone,
    I hope this is not a stupid question, but I simply don’t get it.
    I setup a new campaign in AdWords and set the max CPC at $0.20 Now Google tells me that the keyword is inactive and that I have to increase the CPC to $0.57 to activate it. I did this and the keyword is now active.
    The campaign was localised for the UK, Australia and New Zealand and when looking for the keyword which is “epitaph” only 1 ad (which is mine) is showing up on google.co.uk and 2 ads (including mine) on google.com.au and google.co.nz
    My question now is why do I have to pay $0.57 per click if there is nothing to compete with. Shouldn’t I just have to pay the minimum CPC what is $0.05 I believe?
    Thanks for your help.
     
    noniman, May 31, 2006 IP
  2. Grokodile

    Grokodile Peon

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    #2
    Google has some quality system. Now, I'm not questioning the quality of your ad, but if it doesn't get clicked enough for the keywords it displays for, then they raise the price.

    I'm not an expert on this, so anyone, please feel free to correct me!

    Anyway, for example, if you have one ad serving many keywords, it's quite usual that your ad will show up for people that aren't even looking for the type of product or service you offer. In that case, quality or relevancy are low, and hence they want more money to show it... otherwise (in a competitive market) you would be taking up valuable advertising space.
     
    Grokodile, May 31, 2006 IP
  3. Micromag

    Micromag Well-Known Member

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    #3
    Yes its correct.

    The quality system called "Quality Score" value is assigned to each keyword - not to the ad.

    But to solve the problem you need to write better ads that attract more clicks to improve the keyword Quality score.
     
    Micromag, May 31, 2006 IP
  4. noniman

    noniman Guest

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    #4
    Hi Guys,
    Thanks for this!
    No offence but this doesn’t make sense to me. For the same ad I have another 3 keywords for which Google accepted $0.20 when I setup the ad. Now, over night one of the $0.20 keywords received over 800 impressions with 10 clicks and Google deactivated it with a message to increase the CPC to $0.30 All the other $0.20 keywords have received far less impressions, some of them with no clicks but they are still active.
    My understanding was that more popular keywords for which you competing with other advertisers cost more than keywords for which just a few or no ads exist.
     
    noniman, May 31, 2006 IP
  5. Micromag

    Micromag Well-Known Member

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    #5
    Your understanding is wrong.

    they are different keywords right? - they have different traffic in google - they have different compettition in adwords network, your ads and your landing page has different relevancy for these different keywords too.
     
    Micromag, May 31, 2006 IP
  6. noniman

    noniman Guest

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    #6

    Understand what you are saying. So a keyword with less traffic in Google can have a higher CPC than a keyword with more traffic. But on the other hand a popular keyword attracts more advertisers which also increases the CPC.
    Are their any low cost keywords with a CPC of $0.01 as Google states on their adwords site? According to all this information this doesn’t seem to be possible.
     
    noniman, May 31, 2006 IP