I was looking at google adwords, playing with the traffic estimator, and it led me to this question (I am an adwords noobie). I thought longtail keywords were supposed to generate lower cost per click, but the traffic estimator tool, doesnt. Take a highly saturated market like payday loans. The CPC was like $5. So, I thought if you go with highly targeted long tail keywords, the CPC would go down. Isnt this how people find .10 bids? What am I missing. I was looking at 6 word phrases using quotes and the cpc was still the same as if it had just one term. Please help.
Before going any further I should say that, IMHO, the keyword tool is extremely unreliable in predicting bid, position and clicks! I don't think you are missing anything. I am in a market that, while not expensively competitive, has a huge number of advertisers. In general I have found little financial benefit in chasing the long-tail, i.e. cheaper CPCs are very hard to find. An interesting result occurs when you use the AD diagnostic tool. Do an exact match search (inside " ") for a 4 or 5 word term that you have as exact match and two things occur; 1. The AD it shows as being triggered will usually be wrong, e.g. I search for bracelets and it shows an ad for rings even though bracelets is a neg. broad match in the 'rings' ad group. 2. Continue to the Preview screen and you will find a correct ad but it may be low position, say page 5 (lowest I have seen is page 10!). Now, click on 'More sponsored results' and you will often find your ad is the only one being shown! Another problem with the long-tail is that Google states they will only show ads once "enough" people start searching the term. Many keywords carry this statement in the "Keyword Analysis" pop-up, (My emphases) In other words, people ARE searching for your term but Google ARE NOT showing your ad! which kind of defeats the purpose of the long-tail tactic. All of which leads me to ask, Is the long-tail dead for advertisers or, if still kicking, is Google attempting to kill it off?
See...there are number of critaria to get lower cpc.if you change in the keyword bid it can't affect you...it also depend on the quality score & Account age.