Q about keywords pricing - Why keywords tool is inaccurate

Ok for this example I am going to use 1 keyword, but I had this problem with mostly ALL the keywords I use. This is what I do

1. Go to Adsense Keywords Tool, look for "web hosting email".
2. I get the estimate, in order to be in positions 1-3, I need to pay $13,65. Cool!
3. I go to my Google Adwords, create a campaign, and soon it says that in order to be on the first page (i.e. at least in position 8!!!) the price is $27 per click.
4. Okay, prices could have changed, so I go back to keywords tool (through which I actually pick and add the keywords back to Adwords account) and I still see the old price, 13 USD for positions 1-3.

Can anyone please explain this to me? I get it all the time, every time I decide to bid on cheap keywords, once I am back to Adwords account it gives me a whole different price.

 

I guess those are only estimates and not actualy pricing - the pricing that you see in keyword tool. Not sure how it works.
I think someone who has experience using adwords can answer this question.

 

> I guess those are only estimates and not actualy pricing

Precisely.

I believe the cost is calculated by using the historical average (which may only be the last 12 months) CTR and QS of all advertisers for the keyword. It then derives the cost based on those averages and current conditions.

What you are failing to realize is that YOUR click rate and therefore YOUR quality score may be below average. Your own minimum bid is based on your own metrics and current existing conditions. An advertiser with better ads has a lower minimum bid to be on page one.

Looking at your screen shot, I suggest you group your keywords around themes, use phrase and exact matches and separate your campaign into search and content network instead of lumping both together.

 

Thanks, a great piece of information!