Steps to Identify the **REAL** Adsense CPC... [A Must Read For Adsense Publishers]

[IM Ash]

Many of us make the mistake of judging potential adsense earnings by looking at the CPC that is provided in Google's keyword tool (GWT). This is a mistake as that value is the amount that advertisers are bidding on for ads on the search network and not the display/content network.

Unfortunately for some the reality of the real CPC is only experienced after they have done all the hard work of developing, optimizing and promoting their site. It can be extremely disappointing when you expect to receive $5 clicks and all you get is a measly $0.20.

But Google has a tool that can help you judge more precisely what you can earn for a click on an ad on your site.

Typically, people type in a keyword in the keyword tool and they then determine the approximate earnings for that particular keyword from the approximate CPC that is given. This process can be seeing below:

It is easy to make the mistake of believing that you can get 68% of the $47.54 for the keyword insurance quotes online. I know I made this mistake in the beginning but if you look at the top left hand corner of the screenshot you will see a tab labelled "Contextual Targeting Tool". If you click on that tab you will be directed to a tool that provides information that is invaluabe to adsense publishers.

The tool actually provides the suggested bid for a keyword or keyword group, and that bid is specifically for ads that are displayed on the content network i.e. your website. See screenshot below:

As you can see from the screenshot above I typed in the same keyword that I used in the previous screenshot (insurance quotes online). This tool then provides a suggested bid for that keyword and related keywords.

The suggested bid in this example is $3.05... WTH! That is a huge difference from the $47.54 that the standard keyword tool provided. In reality: if you target the keyword "insurance quotes online" as an adsense publisher you can expect 68% of the $3.05 as your highest EPC. Of course some advertisers will bid less and others may bid more and that will cause a fluctuation in the CPC. Competitive factors play an extensive role in determining your actual EPC.

The "Contextual Targeting Tool" is a fantastic mechanism for you to check the REAL CPC for a specific keyword, and it can help you assess your potential earnings with a greater level of precision.

This is a great tool guys, and it can really help us make a more informed decision when researching adsense targeted keywords.

Keep in mind: not everything is black and white in the adsense world... there are various factors that influence your earnings. Here is a video to help you understand why there are fluctuations in your adsense earnings....

YouTube - ‪Introduction to the Ad...

[Vlad Bacioiu]

Thanks a lot for your post but I can't see the photos. You're right. I found few keywords with cpc more than $ 100 but I do not think I will receive 100 bucks /click

[bhuff85]

That's pretty cool. Is this relatively new (I see it's in beta still)? Either way, it seems about right from the EPC I've seem come in for a few websites that I'm working on currently.

Thanks for the share man!

[nokimchen]

i cant see the photo either

[paulgl]

The $47 click quickly becoming $3 (or less) is something I've
been preaching to the people who keep creating a frenzy with
their so-called high paying keyword lists. They don't
have a clue. People swallow the line, then come here and claim
google is ripping them off or something.

Whatever I think of the tool is no matter. The bottom line, is
if your scenario is true, it's closer to the truth.

Paul

[IM Ash]

Originally Posted by bhuff85

That's pretty cool. Is this relatively new (I see it's in beta still)? Either way, it seems about right from the EPC I've seem come in for a few websites that I'm working on currently.

Thanks for the share man!

No problem! Yeah, it's new and it is as accurate as you can get. This tool will certainly help us get a more precise idea of the potential EPC.

@Paul
The only time a publisher gets a high paying click is when there is a new Adwords advertiser in the fold who bids blindly, but these guys don't last long

The tool is accurate - I've tested its accuracy with my own adsense sites and it proves to provide a fairly accurate value on the amount advertisers are bidding for ads on the display/content network.

[seomaker24]

Many Many Thanks For Your Great Share.

[scott g]

My rule of thumb was to divide the CPC by 2 and keep your fingers crossed !! Talking about $2.5-$6 terms.

On old sites I noticed that after they aged 6+ months the CPC's increased pretty substantially... Anyone else experience this?! Or am I just trying to put two-and-two together to make something?!

CHEERS!

[IM Ash]

Originally Posted by scott g

My rule of thumb was to divide the CPC by 2 and keep your fingers crossed !! Talking about $2.5-$6 terms.

On old sites I noticed that after they aged 6+ months the CPC's increased pretty substantially... Anyone else experience this?! Or am I just trying to put two-and-two together to make something?!

@Scott

My CPC has been fairly stable over time, but keep in mind that you will receive a greater return for clicks on the ad unit that appears first in your code, and as time goes by your traffic will increase and that results in a greater liklihood of people clicking ads that are higher up.

Secondly, the quality of the ads will affect the CTR, if the ads in your first unit are not attractive then people will not click on them.

[InTheMaking]

So once you take the 47 and turn it into 3 you still take 68% of the 3.00? thats awful lol but realistic, thanks!

[IM Ash]

Originally Posted by InTheMaking

So once you take the 47 and turn it into 3 you still take 68% of the 3.00? thats awful lol but realistic, thanks!

Yes that's right - Google pays 68% to adsense publishers from the CPC that is paid by an advertiser for ads running on the content network.

[InTheMaking]

Originally Posted by Eleva8

Yes that's right - Google pays 68% to adsense publishers from the CPC that is paid by an advertiser for ads running on the content network.

they take a pretty big chunk lol

it should be like 85% of anything.

[John Brown]

Here's what is happening for me:

Keyword #1 actual CPC is averaging $ .33 while the suggested bid claims $ .89
Keyword #2 actual CPC is averaging $ .14 while the suggested bid claims $ 1.02
Keyword #3 actual CPC is averaging $ .14 while the suggested bid claims $ .79
Keyword #4 actual CPC is averaging $ .26 while the suggested bid claims $ 1.29

Keyword # 1,2 are brand new sites about a month old while # 3,4 are a couple years old. Yes the earnings are sad and frustrating, but these are the numbers I'm getting. There are random times where I get $ .90 or $ .80 for # 3 but these are 1/30 odds.

Can anyone else do a comparison test like this with numbers they're actually getting on Adsense and compare it with this Suggested Bid tool?

[Jeremy Banks]

Originally Posted by paulgl

The $47 click quickly becoming $3 (or less) is something I've
been preaching to the people who keep creating a frenzy with
their so-called high paying keyword lists. They don't
have a clue. People swallow the line, then come here and claim
google is ripping them off or something.

Whatever I think of the tool is no matter. The bottom line, is
if your scenario is true, it's closer to the truth.

Paul

Paul you are dead on! My first sites were made for "high paying keywords" these $20 ads were paying closer to $1. The tool is made for ADVERTISERS to tell them how much they should pay, and google takes a cut, then pays out a cut. Also google suggests they bid $10, but most will only bid 1 or $2

My tactic is MUCH smarter and focuses on sites built around ads that people would WANT to click on. It's making me good money

[Jeremy Banks]

Originally Posted by John Brown

Here's what is happening for me:

Keyword #1 actual CPC is averaging $ .33 while the suggested bid claims $ .89
Keyword #2 actual CPC is averaging $ .14 while the suggested bid claims $ 1.02
Keyword #3 actual CPC is averaging $ .14 while the suggested bid claims $ .79
Keyword #4 actual CPC is averaging $ .26 while the suggested bid claims $ 1.29

Keyword # 1,2 are brand new sites about a month old while # 3,4 are a couple years old. Yes the earnings are sad and frustrating, but these are the numbers I'm getting. There are random times where I get $ .90 or $ .80 for # 3 but these are 1/30 odds.

Can anyone else do a comparison test like this with numbers they're actually getting on Adsense and compare it with this Suggested Bid tool?

I like to target long tail searches within high paying niches, that way I get the easy ranking of long tail, but the nice pay out of competitive industries! Working well so far

[John Brown]

Originally Posted by Jeremy Banks

I like to target long tail searches within high paying niches, that way I get the easy ranking of long tail, but the nice pay out of competitive industries! Working well so far

that's all well and good but for the purpose of this topic are the numbers you are seeing on your actual Adsense CPC matching up with the Suggested Bid of the method he's talking about?

[IM Ash]

Originally Posted by John Brown

Here's what is happening for me:

Keyword #1 actual CPC is averaging $ .33 while the suggested bid claims $ .89
Keyword #2 actual CPC is averaging $ .14 while the suggested bid claims $ 1.02
Keyword #3 actual CPC is averaging $ .14 while the suggested bid claims $ .79
Keyword #4 actual CPC is averaging $ .26 while the suggested bid claims $ 1.29

Keyword # 1,2 are brand new sites about a month old while # 3,4 are a couple years old. Yes the earnings are sad and frustrating, but these are the numbers I'm getting. There are random times where I get $ .90 or $ .80 for # 3 but these are 1/30 odds.

Can anyone else do a comparison test like this with numbers they're actually getting on Adsense and compare it with this Suggested Bid tool?

@ John Brown

Keep a few things in mind:

The tool will provide a more accurate picture of what you can expect to earn/click in comparison to the standard keyword tool, but there are a few other variables that you need to take into account, and they are:

• clicks on the ad unit that appears first in your website coding will generate a higher EPC than the other units
• some advertisers will bid a lower amount than the "suggested bid" and this will result in a lower EPC for you and then there are others who might bid the same amount for the search and the content network (this will result in a higher EPC, but it is usually inexperienced advertisers who do this)
• visitors to your site who are from a different country will be served ads that are specific to their country and the suggested bid for each country varies

You can't just take a suggested bid of say $1.00 and assume your actual CPC is going to be 68% of that $1.00. There are many variables that affect each click!

The "suggested bid" in the "contextual targeting tool" is a rough figure that will give you a more realistic view on what you can earn, and it is more precise than the approximate CPC that is defined in the standard keyword tool.

[StoneWilson]

Instead of Adwords Keyword Tool, I trust spyfu.com more on biding estimation.

[xxxJamesxxx]

Thanks... I didn't know that

James

[IM Ash]

Originally Posted by blog4all

went tro all ur post, i am left behind, i need your help please help me review my blog and send me recommendation, get $0.01 everyday after spending day and night working on my blog. please help me out. cheers
blog4all-com.blogspot.com
luking forward to hearing from you

The problem with your blog is that it is a news blog. While these type of sites can earn a healthy income, the key determining factor is traffic. You will need loads of traffic to earn a respectable income.

You will need to write on topics that are hot and target keywords that have a decent CPC. The challenge is finding paying keywords that are news related. I personally do not have experience with news blogs, so I can't really offer you the advice you are looking for.

I can however advise you to optimize your ad placements. Right now your ads are in unfavourable positions. You should have a large rectangular ad unit somewhere above the fold as this is usually the best performing ad.

Here is a heat map that Google provides that actually provides information on optimal ad placement:
Where should I place Google ads on my pages? - AdSense Help

[bhuff85]

What about a case where the Contextual Tool shows a higher CPC than what the Keyword Tool does (i.e. $1.56 Avg CPC on Contextual, but $0.31 Avg CPC on Keyword Tool)?

[IM Ash]

Originally Posted by bhuff85

What about a case where the Contextual Tool shows a higher CPC than what the Keyword Tool does (i.e. $1.56 Avg CPC on Contextual, but $0.31 Avg CPC on Keyword Tool)?

I haven't come across a situation like this! You can also use SpyFu to cross-check the data but I personally don't like the tool because it isn't all that accurate.

For the most part, Google's contextual tool has proven to provide a more realistic and accurate CPC.

This could be a bug or I suspect it might be a case where one or more of the keywords within the group is more competitive than the main keyword. In this case I think Google will adjust the CPC accordingly for the Adwords Advertiser, but that really doesn't help us in any way.

[paulgl]

That would be quite possible. Since individual sites can be in a bidding war,
and many sites are golden, it could in fact skew the bids for the display
network. But then, your new site will still not get that high of a bid.

It would be rare, but could certainly happen depending on the niche.

Paul

[joeulman]

Great tool.thanks for sharing.it is very useful.

[InTheMaking]

Well, to post some feedback..

My one specific website that says it should get 1.40/.68 = atleast 80 cent clicks is only receiving 7 cent clicks so can't follow this too much.

[IM Ash]

Originally Posted by InTheMaking

Well, to post some feedback..

My one specific website that says it should get 1.40/.68 = atleast 80 cent clicks is only receiving 7 cent clicks so can't follow this too much.

See reply #17

There are many variables to take into account... the contextual tool provides the Max. CPC and it is more realistic for research purposes. Those who are experienced with Adsense are aware that Adsense earnings are influenced by various factors.

I've included a video that may help you get a better understanding on earnings fluctuations.

[markowe]

Thanks for sharing, I hadn't noticed this. It's still in beta, I see.

Just checked one recent keyword of mine and this tool shows about 50% of what the KWT showed for CPC, but still double what I am ACTUALLY getting on average

I am starting to conclude that I really need to get away from those low-volume, supposedly higher-paying keywords. You can kill yourself getting those sites to rank, only to find that not only is the traffic low but the CPC is nowhere near where you had hoped.

Better to at least go for higher-volume keywords and go for the numbers in case CPC doesn't live up to expectations.

In any case, I will from now on be dividing KWT CPC by FOUR to get something approaching my expected actual CPC. In other words, projected KWT CPC of much under $4 probably isn't worth going for without good volume.

[IM Ash]

Originally Posted by markowe

Thanks for sharing, I hadn't noticed this. It's still in beta, I see.

Just checked one recent keyword of mine and this tool shows about 50% of what the KWT showed for CPC, but still double what I am ACTUALLY getting on average

I am starting to conclude that I really need to get away from those low-volume, supposedly higher-paying keywords. You can kill yourself getting those sites to rank, only to find that not only is the traffic low but the CPC is nowhere near where you had hoped.

Better to at least go for higher-volume keywords and go for the numbers in case CPC doesn't live up to expectations.

In any case, I will from now on be dividing KWT CPC by FOUR to get something approaching my expected actual CPC. In other words, projected KWT CPC of much under $4 probably isn't worth going for without good volume.

The contextual tool is far more dependable, but as I stated in other replies and as the video explains - there are many variables that affect the actual CPC.

I have a few sites that have completely flopped as well, and I'm also pursuing keywords with larger volume now. I've found it is better to add more pages to a site, target related keywords and get those inner pages ranked as this helps increase the return for each site I develop and it is more sustainable.

[Boris_yo]

Originally Posted by paulgl

The $47 click quickly becoming $3 (or less) is something I've
been preaching to the people who keep creating a frenzy with
their so-called high paying keyword lists. They don't
have a clue. People swallow the line, then come here and claim
google is ripping them off or something.

Whatever I think of the tool is no matter. The bottom line, is
if your scenario is true, it's closer to the truth.

Paul

I guess we should see these lists once again, but this time using Contextual Targeting Tool.

[vraadoo]

Many Many Thanks For Your Great Share.It'll help me for my adsense working

[VoiceOfTruth]

Interesting. It would be helpful if there was a list of the high paying keywords from the "Contextual Targetting Tool"

[JohnJD]

Fantastic share and very important information to know. It really helped me made my decision on a keyword. Thumbs up!

[Hud]

Wow. thanks a lot for sharing. I've reevaluated my projects and its a horror scenario, high cpc low traffic keywords, or even high cpc keywords do not seem to exist outside the google serp ad placements themselves where we can not get our share from... I have to rethink my whole strategy.

So, after looking at some case reports from people comparing their actual cpc's with the ones from the contextual targeting tool, it seems like we can take the CTT's estimate, divide it by 4, and get a pretty much accurate worst case szenario estimate?

Maybe more people could compare their real cpc with the one from CTT and share their findings?

P.S.: I can't understand why this thread has so few replies, its the most important factor yet for adsense publishers - maybe many do not want to be robbed of their illusions?

[IM Ash]

Originally Posted by Hud

Wow. thanks a lot for sharing. I've reevaluated my projects and its a horror scenario, high cpc low traffic keywords, or even high cpc keywords do not seem to exist outside the google serp ad placements themselves where we can not get our share from... I have to rethink my whole strategy.

There is one method for you to still get your share from the ads in the SERPs and that is by using the "ads for search" custom toolbar on your site. But it works best for bigger, authority type sites.

Originally Posted by Hud

P.S.: I can't understand why this thread has so few replies, its the most important factor yet for adsense publishers - maybe many do not want to be robbed of their illusions?

It amazes me how many people do not understand anything about Adsense, yet they are Adsense publishers. Adsense is all about the numbers!

[simonbuzz]

wow man thanks for sharing this awesome info....

[Hud]

Evla8 - I have to admit, I am just starting to understand that myself... I always knew the more articles the better, but with that high cpc idea in the back of my head I thought, "hey I don't need that many articles to have a nice income! But now, with "cpc reality" in mind, it becomes clear that if one wants to be successful with adsense, there is a need for a lot of articles with a reasonable cpc of 1-2$ (won't get much more for 99,9 of the keywords anyways) and low serp competition with high enough traffic keywords, so you don't have to spend all month doing seo for a few articles, not to mention a lot of them... I am already adjusting my strategy to the facts. Its still a great way to get an insane passive income...

[IM Ash]

Originally Posted by Hud

Evla8 - I have to admit, I am just starting to understand that myself... I always knew the more articles the better, but with that high cpc idea in the back of my head I thought, "hey I don't need that many articles to have a nice income! But now, with "cpc reality" in mind, it becomes clear that if one wants to be successful with adsense, there is a need for a lot of articles with a reasonable cpc of 1-2$ (won't get much more for 99,9 of the keywords anyways) and low serp competition with high enough traffic keywords, so you don't have to spend all month doing seo for a few articles, not to mention a lot of them... I am already adjusting my strategy to the facts. Its still a great way to get an insane passive income...

Yeah, I love Adsense income but I do have other income streams as well, just to ensure I don't place all my eggs in one basket.

My advice for you or anyone for that matter is to build authority type sites that are content rich. You can build the smaller sites as well to boost your income but your main focus should be on building bigger sites. When a site becomes an authority and it increases in PR it ranks for long-tail keywords naturally and new content that is added ranks without much SEO work.

[Hud]

I agree, building authority sites is already my main aim, but I made the mistake to buy "almost" EMD's instead of brandable names because I aimed for some high cpc keywords... now that is annoying :/ bandable names are so much better in the long run and look less spammy I guess...

[eusof.com]

Thanks for debunking the theory and demystifying those wso sellers on high CPC adsense earnings.

[Teleologist]

I need some help understanding the Contextual Targeting Tool. While it is true that if you take those $10 and $20 keywords from the keyword tool and run them through the Contextual Targeting Tool you will get way lower numbers but it is also true that if you run those 10 cent and 20 cent keywords from the keyword tool through the Contextual Targeting Tool that you will often get much higher numbers. For example, the keyword "who invented gunpowder" has a cpc of 14 cents according to the keyword tool but the Contextual Targeting Tool shows it to be $2.34. But when I check sites that target this keyword I find no adsense ads on them. And this makes sense as I doubt the Keyword "who invented gunpowder" has an actual value of $2.34. I know much better keywords that go for less than a dollar. and I have run into dozens of such examples. So what gives? Is the Contextual Targeting Tool very inaccurate or am I misunderstanding something here?

[mrgood]

Thank you for this tip. Very good !

[Raw Guava]

Fantastic information, beats using any long winded formulas and second guessing. Thumbs up

[Lukas]

But this has been known. Why are the majority of publishers experiencing CPC drops of 50 to 70% on long-time high paying niches?

[Markony]

Thanks for this !!!

[IM Ash]

Originally Posted by Lukas

But this has been known. Why are the majority of publishers experiencing CPC drops of 50 to 70% on long-time high paying niches?

I would say it is because Google are now placing emphasis on educating Adwords advertisers on how best to use the display network. With the addition of tools like this one it means many advertisers will not just bid the same amount for the search and display network.

The drop in CPC probably equates to a more informed advertiser.

[Lukas]

So they are more informed across the board? It seems to have to do with Panda (after July) for others, including me. Traffic is the same as are the clicks. Lower bids eventually means lower profit for Google.

The display network is for image/banner advertising (correct?) but when most publishers pick search or text based ads, CPC is still down by 75% or more on high paying topics, and it is suddenly. Surely, these decreases in publisher CPC is not because ALL of the advertisers in various niches became a lot more knowledgeable in 1 month. We all know real estate, car insurance, cosmetic surgery are not 50cent words when they used to be 3$ or more clicks just a few months ago for years. It seems like a slap across the entire Adsense account for this to happen to people. Advertisers get to pick which sites to put an ad on but publishers cannot say yes or no? It is allowed on many other platforms. At least, allow the publisher the ability to say no to a blog or MFA arbitrage site.

[ethanhunt0257]

Thanks a lot for this. Can you provide me that local marketing cpc cost more or ppc which is good for quick results.

[IM Ash]

Originally Posted by Lukas

So they are more informed across the board? It seems to have to do with Panda (after July) for others, including me. Traffic is the same as are the clicks.

My CPC has remained constant after Panda and I really do not believe an update that was focused on returning quality sites in the SERPs will affect anyone's Adsense income. There are various factors that affect CPC and an informed advertiser is just one of many.

Originally Posted by Lukas

Lower bids eventually means lower profit for Google.

Not necessarily: lower bids on the display network will ensure more advertisers use the display network. I have used Adwords in the past and I know how quickly my budget was eaten up when I chose to use the display network and that is why I only advertised on the search network.

By educating advertisers how to use the display network, Google will attract more advertisers to utilizing the display network and they will retain many of them because these advertisers will not lose their shirt after one campaign.

Originally Posted by Lukas

The display network is for image/banner advertising (correct?)

No, the display network includes your site and Google's other properties like Gmail.

Originally Posted by Lukas

... but when most publishers pick search or text based ads, CPC is still down by 75% or more on high paying topics, and it is suddenly. Surely, these decreases in publisher CPC is not because ALL of the advertisers in various niches became a lot more knowledgeable in 1 month.

You can't really judge what an Advertiser is bidding because it is only Google and the Advertiser who will know this. From your drop in CPC you can assume that the Advertisers are bidding lower for ads on the display network (your site) and/or there are less advertisers bidding on a specific keyword which lowers competition and drives down the bid price.

Originally Posted by Lukas

We all know real estate, car insurance, cosmetic surgery are not 50cent words when they used to be 3$ or more clicks just a few months ago for years.

I have sites in these niches and my CPC has remained constant after Panda. You need to check the CPC using the contextual tool that was explained in the opening post and that will give you a reflection of what advertisers are bidding for keywords on your site.

Originally Posted by Lukas

It seems like a slap across the entire Adsense account for this to happen to people. Advertisers get to pick which sites to put an ad on but publishers cannot say yes or no? It is allowed on many other platforms. At least, allow the publisher the ability to say no to a blog or MFA arbitrage site.

You can block advertisers within the Adsense interface... I have blocked many sites which usually include sites like groupon and the like.

[scruffy77]

thanks for this post, always want to know more about adsense

[SootedNinjas]

In GKT, the column "competition" is about Adwords competition. Right ?

Would that metric only apply to the search network or can be applied to the CTT network ?