CTR matters for content network also?

Chucky · 09-01-2009, 11:40 PM

Hey Warriors,

I started my first Adwords campaign this week. Y'day my ads had an average CTR of 0.62% and my average CPC was 48 cents with the average position being 6.8. I started off with like 20 ads. I paused the low CTR ads, so today my average CTR is up to 1.77% with the best ones being over 3.5%. Ad position is up to 4.8 but average CPC is also up to 53 cents from 48 cents. Today I paused some more low CTR ads. So I have left about 5 ads now and tomorrow, theoretically, if I get a 3.5% average CTR, my CPC should halve right?

Will it halve or the ad position rise? Today, although my CTR more than doubled, the CPC didn't halve, I suppose that's because the position rose from 6.8 to 4.8.

Any advice as to what else I can do to fine tune this campaign would be much appreciated.

BTW, this is a placement campaign and not search.

Thanks in advance!
Chucky

Lucid · 09-02-2009, 09:16 AM

> I started off with like 20 ads

First, don't test 20 ads at the same time. You're just diluting the data and you can't make informed decisions about what ad does better or worse if your data is skewed in any way. Test three maximum, I prefer two at a time.

> my CPC should halve right?

It just doesn't work that way. Doubling your CTR will not half your CPC.

As with search, the content network works by ranking ads based on CTR and bid (in search, quality score calculations are used for CTR which is a big portion of QS). Again as in search, what you pay when someone clicks on your ad is very dependent to what the ad below you bids.

I explain it all along with how Google calculates your costs in my Adwords FAQ you can freely download.

Chucky · 09-02-2009, 05:50 PM

Thank you Lucid, I've already seen your FAQ and even recommended it on a few other posts.
Chucky

Quote:

Originally Posted by Lucid

> I started off with like 20 ads

First, don't test 20 ads at the same time. You're just diluting the data and you can't make informed decisions about what ad does better or worse if your data is skewed in any way. Test three maximum, I prefer two at a time.

> my CPC should halve right?

It just doesn't work that way. Doubling your CTR will not half your CPC.

As with search, the content network works by ranking ads based on CTR and bid (in search, quality score calculations are used for CTR which is a big portion of QS). Again as in search, what you pay when someone clicks on your ad is very dependent to what the ad below you bids.

I explain it all along with how Google calculates your costs in my Adwords FAQ you can freely download.

pauljeaston · 09-24-2009, 05:24 AM

Any update so far Chucky? The starting bid is really a problem for newbies. What amount do you usually start?

Lucid · 09-24-2009, 08:07 AM

Paul, nobody can tell you what you should bid. You have to decide based on your situation. I can't tell you "bid $0.65", that would be ridiculous.

How to calculate? Product nets a profit of $X after costs of goods sold. The conversion rate is Y%. Take Y% and divide by $X. So, if $10 profit and 2% conversion, that's $0.20 per click you can spend on advertising that product and break even. If you bid 20 cents, the worse you'll do is break even but you'll probably make a small profit since your actual cost will be lower than your bid. Now, how much do you want to make in pure profit? If you don't want to spend more than 50% of the net on advertising, you should then multiply that by the 20 cents which is 10 cents, the bid you must place.

As for your daily budget, either decide how much you can afford. Or, to maximize your profits, find out how many people search on your terms, multiply by your click rate to give you the number of clicks and multiply by your bid. So 1500 people per day search your keywords. You have a 5% CTR which gives 75 clicks per day. Your bid is $0.30 so your budget should at a minimum be $22.50. I add another 20% ($27) so that my ads are displayed when my CTR goes up or there's more searches for some reason. Of course, that can all be adjusted as needed. Your CPC and budget is not set in stone.

pauljeaston · 09-30-2009, 12:47 AM

Hi Lucid, that was great advice. When you set the budget, is it the budget for the ad group or is it with the whole campaign? I have 3 ad groups under one campaign, all with content network, my budget is $20. Is the $20 going to be shared by the 3 ad groups or am I having a $60 budget?

Lucid · 09-30-2009, 08:06 AM

The budget can only be set at the campaign level. Your $20 is "shared" as you put it with all your groups. So calculate what you need for each group to maximize your impressions and set appropriate budget. Adjust as you add or remove groups.

09-01-2009, 11:40 PM	#1
Chucky HyperActive Warrior Join Date: Mar 2008 Location: , , . Posts: 186 Thanks: 5 Thanked 4 Times in 4 Posts	CTR matters for content network also? Hey Warriors, I started my first Adwords campaign this week. Y'day my ads had an average CTR of 0.62% and my average CPC was 48 cents with the average position being 6.8. I started off with like 20 ads. I paused the low CTR ads, so today my average CTR is up to 1.77% with the best ones being over 3.5%. Ad position is up to 4.8 but average CPC is also up to 53 cents from 48 cents. Today I paused some more low CTR ads. So I have left about 5 ads now and tomorrow, theoretically, if I get a 3.5% average CTR, my CPC should halve right? Will it halve or the ad position rise? Today, although my CTR more than doubled, the CPC didn't halve, I suppose that's because the position rose from 6.8 to 4.8. Any advice as to what else I can do to fine tune this campaign would be much appreciated. BTW, this is a placement campaign and not search. Thanks in advance! Chucky
	If you think you can do it, you are right. If you think you can't do it, you're still right. Success doesn't come to you the way you think it will, success will come to you the way you think. If the dream is big enough, the facts don't matter.

09-02-2009, 09:16 AM	#2
Lucid HyperActive Warrior Join Date: May 2009 Posts: 415 Thanks: 8 Thanked 37 Times in 34 Posts	Re: CTR matters for content network also? > I started off with like 20 ads First, don't test 20 ads at the same time. You're just diluting the data and you can't make informed decisions about what ad does better or worse if your data is skewed in any way. Test three maximum, I prefer two at a time. > my CPC should halve right? It just doesn't work that way. Doubling your CTR will not half your CPC. As with search, the content network works by ranking ads based on CTR and bid (in search, quality score calculations are used for CTR which is a big portion of QS). Again as in search, what you pay when someone clicks on your ad is very dependent to what the ad below you bids. I explain it all along with how Google calculates your costs in my Adwords FAQ you can freely download.
	Create high click rate, high conversion rate PPC campaigns Google Adwords Management: Catch More Flies in Your Web

09-24-2009, 05:24 AM	#4
pauljeaston Pauljeaston Join Date: Sep 2009 Posts: 92 Thanks: 0 Thanked 2 Times in 2 Posts	Re: CTR matters for content network also? Any update so far Chucky? The starting bid is really a problem for newbies. What amount do you usually start?
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09-24-2009, 08:07 AM	#5
Lucid HyperActive Warrior Join Date: May 2009 Posts: 415 Thanks: 8 Thanked 37 Times in 34 Posts	Re: CTR matters for content network also? Paul, nobody can tell you what you should bid. You have to decide based on your situation. I can't tell you "bid $0.65", that would be ridiculous. How to calculate? Product nets a profit of $X after costs of goods sold. The conversion rate is Y%. Take Y% and divide by $X. So, if $10 profit and 2% conversion, that's $0.20 per click you can spend on advertising that product and break even. If you bid 20 cents, the worse you'll do is break even but you'll probably make a small profit since your actual cost will be lower than your bid. Now, how much do you want to make in pure profit? If you don't want to spend more than 50% of the net on advertising, you should then multiply that by the 20 cents which is 10 cents, the bid you must place. As for your daily budget, either decide how much you can afford. Or, to maximize your profits, find out how many people search on your terms, multiply by your click rate to give you the number of clicks and multiply by your bid. So 1500 people per day search your keywords. You have a 5% CTR which gives 75 clicks per day. Your bid is $0.30 so your budget should at a minimum be $22.50. I add another 20% ($27) so that my ads are displayed when my CTR goes up or there's more searches for some reason. Of course, that can all be adjusted as needed. Your CPC and budget is not set in stone.
	Create high click rate, high conversion rate PPC campaigns Google Adwords Management: Catch More Flies in Your Web

09-30-2009, 12:47 AM	#6
pauljeaston Pauljeaston Join Date: Sep 2009 Posts: 92 Thanks: 0 Thanked 2 Times in 2 Posts	Re: CTR matters for content network also? Hi Lucid, that was great advice. When you set the budget, is it the budget for the ad group or is it with the whole campaign? I have 3 ad groups under one campaign, all with content network, my budget is $20. Is the $20 going to be shared by the 3 ad groups or am I having a $60 budget?
	Suffering from Gout? Check out Cures for Gout

09-30-2009, 08:06 AM	#7
Lucid HyperActive Warrior Join Date: May 2009 Posts: 415 Thanks: 8 Thanked 37 Times in 34 Posts	Re: CTR matters for content network also? The budget can only be set at the campaign level. Your $20 is "shared" as you put it with all your groups. So calculate what you need for each group to maximize your impressions and set appropriate budget. Adjust as you add or remove groups.
	Create high click rate, high conversion rate PPC campaigns Google Adwords Management: Catch More Flies in Your Web