PPC, click cost and not enough data keywords

[Matt1959]

Having got a tiny adword campaign up and running, theres something I'm unsure about.

How come I can pay 0.04 per click for position 3 or 4 for a search term that has say 2000 searches per year but have to pay 0.25 per click even to get on the page for a search term that is listed on the googles keywords tool as having "not enough data":|:|

 

[Encompass]

Hi Matt

There are a number of reasons why this could happen; the amount you have to bid is determined by what everyone else is bidding (amongst other things), so if more people are bidding for that keyword then you have to pay more to compete with them.

Another possible but unlikely (because you account is new) reason could be that your CTR is not high enough in that campaign and so you have to bid more. This is unlikely because Adwords give a small grace period with new accounts and you probably have all your keyword in one campaign. If these cases are not true this could be your problem and you will need to get your CTR up to improve it.

Good Luck

 

[Matt1959]

ah ok, makes sense about other people bidding.....

With regard to Google "approval" , am I right to say that one of the many reasons for having seperate campaigns is so bad performing keywords don't drag the rest down?

 

[Encompass]

No, you have separate campaign so you can separate your different marketing initiatives; for example you have a promotion and then have your normal running ads or you have 2 websites which you want to advertise separately for, from one Google account, etc.

Really if you have a bad performing ad you should disable it, but you should have different ad groups to separate your great ads from your mediocre ones. This way you can optimise the mediocre ads, testing various ad text, while still getting the full benefit of your best ads.