Sudden drop in conversion with content network

Discussion in 'Google AdWords' started by t-chan, Oct 28, 2008.

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  1. #1
    My campagin is basically run mostly in content network (Except some serch network campaignes with only 10 or so keywords) and I had a steady, reasonable conversion rate more than a year for my product.

    In this month however, my conversion rate went down from 1.0% to 0.4% all of a sudden.

    Only thing I can think of I did differently is that I lower the bid gradually for my content network. So now actually Average Cost Per Click is lower than it used to be and I get more clicks, but they don't give me enough sales.

    The actual numbers are like below

    (Before)

    My max bid was $1.2, actual average cpc was $1, conversion rate was 1%
    I sell $200 product so I spent $100 to gain $100 profit.

    (Now)

    My max bid is $0.8, actual average cpc is $0.6, conversion rate is 0.4%
    I need 250 clicks to sell one so I spend about $150 to gain $50 profit.


    I'm wondering why it is happening...The only difference and reason I can think of is because I lowered the bid.

    Maybe since I lowered my bid gradually so now I get more clicks with lower cost but maybe they are low quality clicks? I mean, for high quality clicks, you have to raise your bid? Is that possible?

    If so, should I make my bid higfher again?
    Conversion Opitimizer possibly?

    Or my sales dropped just because bad economy or something?
    But I think the drop is too sudden and steep for that...

    Thanks for your help

    (To remind you again, it is about content network only)
     
    t-chan, Oct 28, 2008 IP
  2. anwaraa

    anwaraa Active Member

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    #2
    I've experienced the same thing for the whole of this month. See my thread at http://forums.digitalpoint.com/showthread.php?t=1077977

    Having had lots of experience on content, I believe this is true.

    I've tried this before and got burnt badly. Personally, I don't believe this is the solution.
     
    anwaraa, Oct 28, 2008 IP
  3. t-chan

    t-chan Member

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    #3
    Thanks anwaraa,
    I saw your thread, and a strange thing is my currency is JPY which is stronger than before now, and I'm working on the Japanese market. At the same time, my average position is still very high....So the currency value seems have nothing to do with it...

    I am very interested in what you said about my theory about having to raise my bid for high quality clicks.
    Can I possibly PM you to ask a bit more about your experience?

    Anyway, thanks very much.

    T-chan
     
    t-chan, Oct 29, 2008 IP