Why is google gaving me a high cpc?

Discussion in 'Google AdWords' started by matt.thebeast, Aug 31, 2010.

  1. #1
    Hello

    I have opened my first adwords account lately.

    I started a compaignwith some keywords that they have 0 concurrence ( no body is bidding on these words in the countries i am targetting: i really checked that) but they high monthly searches (between 1 million and 200k local searches per month: according to google adwords and it must be true since these keywords are really popular.

    The problem is that google is requesting me to bid higher than 40 cents for some of them and 1$ for the other. I keep hearing that poeple can get their ads published for 5 cent on non competitive words(or should i be mistaken?)

    Is it normal that google requests such high bids for keywords that nobody is bidding on them?

    I even tried to bid on a combination of letters that no body will search for on google ( like "tfgyuhlygkuh").And of course nobody will bid on such a combination:) but it still wants me to bid 30 cents to be on first page!!

    Anyone can explain this to me please?
     
    matt.thebeast, Aug 31, 2010 IP
  2. matt.thebeast

    matt.thebeast Peon

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    #2
    sorry for the spelling mistake in the title
     
    matt.thebeast, Aug 31, 2010 IP
  3. psharma

    psharma Prominent Member

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    #3
    High CPC may be result of poor quality score.
    Google penalizes bad websites with high cpc and reward good websites with low cpc by a method called quality score.
     
    psharma, Aug 31, 2010 IP
  4. matt.thebeast

    matt.thebeast Peon

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    #4
    ok thx
    i ll check this out
     
    matt.thebeast, Aug 31, 2010 IP
  5. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #5
    QS is everything in Adwords. In fact, it's everything in pretty much every PPC search engine out there. They may not tell you the way Adwords does but they want quality ads because quality = money.

    Quality determines your position as well as how much you pay.

    The first page bid estimate is calculated based on your QS. Doesn't matter if there are currently no one bidding on the keyword, which is highly unlikely. In fact, the system looks at advertisers, past and present in every country to figure this out.

    Bidding on "tfgyuhlygkuh", Adwords probably is thinking that your page is irrelevant for that "keyword" and therefore you get hit with a few points off QS. It probably looks at similar keywords, maybe someone else doing a test on other nonsensical keywords or keywords it thinks is what you mean (tfg could be an abbreviation or the name of a company).
     
    Lucid Web Marketing, Aug 31, 2010 IP
  6. redesignunit

    redesignunit Peon

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    #6
    Let me check first then i can share with you :)
     
    redesignunit, Aug 31, 2010 IP
  7. Host IT

    Host IT Peon

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    #7
    Well said @Lucid.

    on PPC the quality score plays a major role.

    the quality score is based upon various factor.

    the bounce rate of your landing page, keyword, and a lot more.

    so, work out on your landing page for better keyword optimization and also minimize the bounce rate which will definetly improve the quality score and let you enjoy the best bidding with best pricing possible for the keyword.
     
    Host IT, Sep 1, 2010 IP
  8. matt.thebeast

    matt.thebeast Peon

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    #8
    Thx guys for replying.
    I will change my landing pages according to my keywords. In fact my quality score is ranging bedween 4 and 5.
    I really appreciate your help.
     
    matt.thebeast, Sep 1, 2010 IP
  9. chicky01

    chicky01 Active Member

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    #9
    it is better to use similar keywords same as your targeting keyword to get high quality score.
     
    chicky01, Sep 1, 2010 IP
  10. matt.thebeast

    matt.thebeast Peon

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    #10
    i wish i can do that :) but even if i get a very low QS the cpc that i am getting right now is really lower tha one that i wiil get when bidding on the really appropriate words
     
    matt.thebeast, Sep 1, 2010 IP
  11. rupeshkumar170

    rupeshkumar170 Peon

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    #11
    use adwords to most search keywords
     
    rupeshkumar170, Sep 1, 2010 IP
  12. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #12
    Thanks Host IT. However, bounce rate is not a component of QS. The main ones are CTR and keyword relevance. Together they are about 90% of your QS.
     
    Lucid Web Marketing, Sep 1, 2010 IP
  13. matt.thebeast

    matt.thebeast Peon

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    #13
    Loool Guys Awords i gonna drive me crazy i guess :p
    When i bid on words really relevant to my landing page (which are present on my ads and i optimised my landing page according to these keywords ) i get a QS 4 or 5 . I tried some other words that they don t have a pertinent relation to my ads or landing page i get a QS 7.

    BTW . Is QS 7 ok or should i get a higher QS . Is ther a big difference in the cpc between QS 7 and 10?
     
    matt.thebeast, Sep 1, 2010 IP
  14. suwubee

    suwubee Peon

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    #14
    you would use high quality score. or your money will rush away quickly.
     
    suwubee, Sep 2, 2010 IP
  15. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #15
    Yes, there can be a huge difference between a QS 7 and QS 10. You've got to understand how the system works if you want to take advantage of it and maximize your returns. I explain it in my Adwords FAQ.

    It depends on the competitor below you, his QS and bid. But if that doesn't change (hypothetical as it always changes), the cost formula shows you'll spend at least 30% less and could be more. I've saved a client 25% by improving ads which already had a QS of 10.

    Remember that CTR is 65% of QS. It's not the fact the keyword is on your landing page or even in your ad. It's getting people who search on your keywords to click. If your keywords are irrelevant, you'll get no clicks. If they are too generic, you may get no clicks. If your keywords are very focused, you still won't get clicks if your ad does not engage them to click. With a QS of 4-5, that is your problem: you're not giving them a reason to click.
     
    Lucid Web Marketing, Sep 2, 2010 IP
  16. matt.thebeast

    matt.thebeast Peon

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    #16
    thx for your help Lucid!Great answer.

    In fact i have a very low CTR i guess(0.1%)

    However i still have a question:

    For thez first comppaign that i have created, i added some keywords that some of them where relevant but they got a QS 5 and the other ones are not directly related to the product i am promoting and some of these irrelevant keywords got a 7 QS.

    The point is when i started this first compaign adwords have no idea about the CTR that i am going to get .So i guess that my QS in this situation is only based on the relevence of my keywords and not the CTR since it is not already calculated.

    And here comes the question!! Is there a third factor that google uses to calculate the QS since the relevance of the keywords isn t apparently the the only element that google uses to evaluate the QS for the new ads (which CTR is not already calculated) ?
     
    matt.thebeast, Sep 2, 2010 IP
  17. Host IT

    Host IT Peon

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    #17
    initially the QS will be off 7, from there google proceeds to do the stuffs...,
     
    Host IT, Sep 2, 2010 IP
  18. tenemail

    tenemail Member

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    #18
    the keyword which is included your ad content will help you get a higher click rate.It will make you have a higher QS.
     
    tenemail, Sep 2, 2010 IP
  19. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #19
    There is an initial QS given until your ad gets enough data to calculate QS normally. I'm not saying it's 7. In fact, it likely is not seven but more likely whatever QS Google established as the mean. My guess is 5 or 6 (probably 5.5).

    The algorithm probably takes a look at other things such as comparing your ad to similar ads in the past, even your account and how good you generally are at creating good ads. It may not even be necessary to do this since it doesn't take long to have enough data to figure out the true QS based on CTR. A few dozen impressions should be enough.

    BTW, your 0.1% CTR is probably because you are opted in to the display network. You should not mix search and display. Note too that QS is only calculated for search and only on Google, not their search partners.
     
    Lucid Web Marketing, Sep 2, 2010 IP
  20. matt.thebeast

    matt.thebeast Peon

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    #20
    Indeed i am displaying my ads on the display network too.

    May i understand that the max cpc for the display network depends only on other poeple bidding on the same keywords?

    May i choose which sites my ads will be displayed on?
     
    matt.thebeast, Sep 2, 2010 IP