View Full Version : PPC Pricing
Mystro
23rd January 2010, 16:10
Guys
Got a quick question about PPC
I have run a campaign before, nothing professional just to see what its about, well today i was playing around with it to maybe restart it next week, but when i ran my keywords I found they were arond 40p - 70p bid and i was below the first page bid with my max budget click of 30p (as this was what i paid last time i did this which was around 3 months ago.
Anyhow i upped my bids to 60p each and rvisited it after about 2 hours and now the bids have dropped from 40p-70p to 20p - 50p
Why have the bids dropped so much
I am not complaining but just wondered why
Scott-CopyandDesign
23rd January 2010, 17:15
In a small nutshell, the higher the CTR (percentage of clicks from impressions), the lower the cost per click.
Google reward you if you create a campaign which generates more clicks and essentially makes Google more money.
In your case, you actually need clicks to generate a CTR, and you won't get many of those without being on page one. So when you upped your bid, you started getting clicks on page one, and this gave you a CTR which was used to calculate the new cost per click.
By the sounds of things, your immediate CTR doesn't sound too bad.
Mystro
23rd January 2010, 17:45
In a small nutshell, the higher the CTR (percentage of clicks from impressions), the lower the cost per click.
Google reward you if you create a campaign which generates more clicks and essentially makes Google more money.
In your case, you actually need clicks to generate a CTR, and you won't get many of those without being on page one. So when you upped your bid, you started getting clicks on page one, and this gave you a CTR which was used to calculate the new cost per click.
By the sounds of things, your immediate CTR doesn't sound too bad.
Thanks Scot
Explains a lot
1.89% CTR, i think i can get this higher too as i chucked in some very broad keywords,
Just experimenting and learning all the time
Scott-CopyandDesign
23rd January 2010, 17:58
1.89% CTR, i think i can get this higher too as i chucked in some very broad keywords,
Just experimenting and learning all the time
Yes you could do a lot better. Remember that the advert itself always has a big influence on the CTR. If you can write an ad which attracts more clicks out of the impressions, then it's going to improve. Also take note of the quality score.
G. Lasagne
23rd January 2010, 18:27
Yes you could do a lot better. Remember that the advert itself always has a big influence on the CTR. If you can write an ad which attracts more clicks out of the impressions, then it's going to improve. Also take note of the quality score.
Thats what im struggling with getting a good ctr, i assume that the ads are maybe at fault bit trying to come up with good copy in such a small advert is a nightmare, you can only say so much.
Another question i have is how come a keyword like "boiler installation newcastle" gets 0 clicks on adwords but gets 20 clicks organically.
and it seems ony "boiler installation" without the town gets the clicks, but i find it hard to believe that most people dont search for local services with a place name at the end, if you follow me.
Nobody would just search "builder" they would search "builder glasgow" or whatever but adwords seems to say otherwise.
also is i put [builder glasgow] would i be found for builder in galsgow, or glasgow builder or would need to put "builder glasgow".
Cheers
Scott-CopyandDesign
23rd January 2010, 18:53
Thats what im struggling with getting a good ctr, i assume that the ads are maybe at fault bit trying to come up with good copy in such a small advert is a nightmare, you can only say so much.
This is where small changes are absolutely key (this also proves how effective small changes can be with long-copy). Even capitalising words and swapping certain synonym's can make a considerable difference.
Run two ads on the campaign with equal traffic, make some tweaks and measure the improvements.
Another question i have is how come a keyword like "boiler installation newcastle" gets 0 clicks on adwords but gets 20 clicks organically.
and it seems ony "boiler installation" without the town gets the clicks, but i find it hard to believe that most people dont search for local services with a place name at the end, if you follow me.I think they do, but it's rare compared to more generic searches.
Plus, in organic searches, the vast majority of clicks are usually through the number one site. With paid listings, there are more ads and more competition. The 1st position ad doesn't always get the most clicks (actually, from what I've seen, it's usually the 3-6th positions).
Nobody would just search "builder" they would search "builder glasgow" or whatever but adwords seems to say otherwise.
also is i put [builder glasgow] would i be found for builder in galsgow, or glasgow builder or would need to put "builder glasgow".
CheersYou might have to ask someone like Steve about that as I'm not a fully fledged Adwords expert. Sometimes Adwords can say there are no impressions for localised terms and the ad isn't being displayed, even though there are impressions and your ad is there (albeit a very small amount).
You also have to remember that at least 100 impressions are needed for that exact match term (100 searches from newcastle for a plumber) before you get any clicks with an average CTR of around 1%. This is just theoretical numbers of course, but the point is still important.
G. Lasagne
23rd January 2010, 19:07
You also have to remember that at least 100 impressions are needed for that exact match term (100 searches from newcastle for a plumber) before you get any clicks with an average CTR of around 1%. This is just theoretical numbers of course, but the point is still important.
Can you expand on this i dont fully understand:|
If you get 1 impression then there is the potential to get 1 click, what do you mean by "you need 100 impressions to get a click"?
Scott-CopyandDesign
23rd January 2010, 19:19
Can you expand on this i dont fully understand:|
If you get 1 impression then there is the potential to get 1 click, what do you mean by "you need 100 impressions to get a click"?
CTR 1% = Per 100 impressions, your ad has been clicked once.
Hypothetically speaking, if your CTR is only 1% on a localised campaign, then you're only getting 1 click per 100 impressions.
So in your case, you would need 100 people to search for "Plumber newcastle" (if this term is exact match in your campaign) on average for one click. As you can imagine, this is quite a large number of searches for a service in one area such as a town or city (compared to a national campaign it is anyway).
So even 3% or 4% CTR is only going to deliver a few clicks per hundred impressions. Then, once you've managed to grab those few highly targeted visitors, your website has to be spot on to turn them into customers.
That's why it's so important that you get your CTR up as high as possible through split-testing. Fine tweaking is key to a successful localised campaign.
Whilst were on the subject, I'd be interested to know just how many impressions can be received for a popular service in a town/city based campaign.
neild
23rd January 2010, 19:21
If you get 100 impressions and only one click then it will convert to only 1%. I'm running some adwords and they have over 20k impressions already over a few days but I have only got about 50 clicks (I think :rolleyes:), so it means the percentage is really, really low.
I have just re-done my adword adverts, hopefully they will produce better results.
Mystro
23rd January 2010, 20:58
Managed to get it to 3.75% overall
What kind of CTR would one consider good
Have some keywords with just ove 5%
Removing the Very broad matches which is slowly putting up the CTR but will take time i suppose