What is Expensive CPC to You?

Desmond Ong · 09-27-2009, 09:15 AM

Hi folks,

Haven't been touching AdWords for years and decided to do a comeback but hey, things changed a lot and I just wanted to know what CPC do you think is cheap and expensive? (If you're let say promoting a $47 product)

I've been using Yahoo for sometime and usually my CPC is around $0.50 or lower -- which I think is cheap.

When I ran the Google AdWords Keyword Tool, I saw some average CPC as high as $5 to $10 -- which is shocking, for a Yahoo PPC marketer like myself.

So, what range of PPC do you think is expensive and cheap?

kingside · 09-27-2009, 09:32 AM

"Cheap" is whatever price allows you to get a decent ROI on your campaign. It's all relative. Adwords has gotten a lot tougher over the last year or so, but you can still get extremely cheap clicks in the right spots.

Lucid · 09-27-2009, 12:57 PM

> "Cheap" is whatever price allows you to get a decent ROI on your campaign.

Exactly.

$0.50 to promote a product where you make $20 and there's an 8% conversion rate = relatively cheap since you spend $50 to make $160, net profit $110 for every 100 visitors.

$0.50 to promote the same product but only a 2% conversion rate = expensive since you spend $50 to make $40, a net loss of $10.

dburk · 09-27-2009, 01:07 PM

Hi Desmond,

What is cheap or expensive is relative to your individual keyword/ad text/landing page combination. First you must determine your average earnings per click (EPC), Anything greater than your EPC is expensive and anything substantially lower than your EPC is cheap. For example, if you have a $22 EPC then a $7 CPC would be very cheap. Since you EPC will vary greatly depending on your keyword, ad text, landing page and offer, you must judge this on a case by case basis.

mejohn · 09-27-2009, 07:57 PM

Anything more than free is too expensive for me. I work hard and get top ten rankings, eliminating the need for paying for clicks.

Seekness · 09-27-2009, 09:08 PM

Quote:

Originally Posted by mejohn

Anything more than free is too expensive for me. I work hard and get top ten rankings, eliminating the need for paying for clicks.

Nothing is free. Don't forget that your time is worth money. What you value that time as is another story (all depends on opportunity cost) , but don't lose sight of that.

efrontiers · 09-27-2009, 10:27 PM

Very true. And with google too moody at this time, Id rather pay for advertising and track things.

Desmond Ong · 09-28-2009, 12:09 AM

Seems like I gotta spend some money if I am to use AdWords. I've been enjoying the low CPC over at Yahoo and spending at $1 for one click and then I have to make a site that has a good quality score is really bothersome.

It could be fun if you are doing this full time but it's hard for me to juggle between studies and PPC campaigns and my niche businesses.

Plus, I heard AdWords is screwing with affiliates lately.

TomBond · 09-28-2009, 03:46 AM

This is quite a useful tool for working out what your target CPC should be based on a desired ROI - max_cpc.swf

09-27-2009, 09:15 AM	#1
Desmond Ong Caffeinated Warrior War Room Member Join Date: Nov 2008 Location: Nebraska Posts: 826 Thanks: 124 Thanked 75 Times in 49 Posts Social Networking Contact Info	What is Expensive CPC to You? Hi folks, Haven't been touching AdWords for years and decided to do a comeback but hey, things changed a lot and I just wanted to know what CPC do you think is cheap and expensive? (If you're let say promoting a $47 product) I've been using Yahoo for sometime and usually my CPC is around $0.50 or lower -- which I think is cheap. When I ran the Google AdWords Keyword Tool, I saw some average CPC as high as $5 to $10 -- which is shocking, for a Yahoo PPC marketer like myself. So, what range of PPC do you think is expensive and cheap?
	EPIC AWESOMENESS ==> My Blog. Duh.

09-27-2009, 09:32 AM	#2
kingside Active Warrior Join Date: Dec 2006 Posts: 57 Thanks: 3 Thanked 2 Times in 2 Posts	Re: What is Expensive CPC to You? "Cheap" is whatever price allows you to get a decent ROI on your campaign. It's all relative. Adwords has gotten a lot tougher over the last year or so, but you can still get extremely cheap clicks in the right spots.

09-27-2009, 12:57 PM	#3
Lucid Senior Warrior Member Join Date: May 2009 Posts: 1,094 Thanks: 10 Thanked 121 Times in 115 Posts	Re: What is Expensive CPC to You? > "Cheap" is whatever price allows you to get a decent ROI on your campaign. Exactly. $0.50 to promote a product where you make $20 and there's an 8% conversion rate = relatively cheap since you spend $50 to make $160, net profit $110 for every 100 visitors. $0.50 to promote the same product but only a 2% conversion rate = expensive since you spend $50 to make $40, a net loss of $10.
	Learn to do PPC the right way.

09-27-2009, 01:07 PM	#4
dburk Senior Warrior Member Join Date: Nov 2005 Location: Tampa, Florida Posts: 4,482 Thanks: 137 Thanked 641 Times in 553 Posts Contact Info	Re: What is Expensive CPC to You? Hi Desmond, What is cheap or expensive is relative to your individual keyword/ad text/landing page combination. First you must determine your average earnings per click (EPC), Anything greater than your EPC is expensive and anything substantially lower than your EPC is cheap. For example, if you have a $22 EPC then a $7 CPC would be very cheap. Since you EPC will vary greatly depending on your keyword, ad text, landing page and offer, you must judge this on a case by case basis.
	Don Burk * Get Results - Outsource Your PPC Management * Get a Keyword Domain Name - www.SeriousNames.com

09-27-2009, 07:57 PM	#5
mejohn HyperActive Warrior Join Date: Sep 2009 Location: Melfort, Saskatchewan Posts: 334 Thanks: 7 Thanked 25 Times in 23 Posts Social Networking	Re: What is Expensive CPC to You? Anything more than free is too expensive for me. I work hard and get top ten rankings, eliminating the need for paying for clicks.
	Soap Nuts Laundry Detergent Tea Tree Oil Google Rankings as a Chess Game Soap Nuts & Other Products

09-27-2009, 10:27 PM	#7
efrontiers Active Warrior Join Date: Feb 2009 Posts: 87 Thanks: 5 Thanked 3 Times in 3 Posts	Re: What is Expensive CPC to You? Very true. And with google too moody at this time, Id rather pay for advertising and track things.
	I am fond of creating micro niche sites and they are quite doing great. Super Solano Hair Dryer and Battery Operated Alarm Clock are just a few of my sites.

09-28-2009, 12:09 AM	#8
Desmond Ong Caffeinated Warrior War Room Member Join Date: Nov 2008 Location: Nebraska Posts: 826 Thanks: 124 Thanked 75 Times in 49 Posts Social Networking Contact Info	Re: What is Expensive CPC to You? Seems like I gotta spend some money if I am to use AdWords. I've been enjoying the low CPC over at Yahoo and spending at $1 for one click and then I have to make a site that has a good quality score is really bothersome. It could be fun if you are doing this full time but it's hard for me to juggle between studies and PPC campaigns and my niche businesses. Plus, I heard AdWords is screwing with affiliates lately.
	EPIC AWESOMENESS ==> My Blog. Duh.

09-28-2009, 03:46 AM	#9
TomBond HyperActive Warrior Join Date: Mar 2009 Location: Watford, England Posts: 268 Thanks: 4 Thanked 11 Times in 9 Posts	Re: What is Expensive CPC to You? This is quite a useful tool for working out what your target CPC should be based on a desired ROI - max_cpc.swf
	The name is Bond.......Tom Bond