Average Price Per Click?

[fly4fish]

Hey, do any of you know if there is a way to find out what other sites are paying for their Google Adwords placement?

I am considering entering into a market with a much lower priced item than the competion, but do not know if I will be able to afford the clicks with my profit margins. I would be charging $30 for my product that should cost no more than $10 to produce. The competition is charging anywhere from $100 - $300 for there products, so I would imagine they are profiting from $50 - $100.

Do you think I can compete for the clicks? Any other suggestions would be appreciated. I have also thought about setting up an affiliate program and let review sites promote my product.

[bikeswine]

The Google Keyword Tool tells you what the average price is that people pay for their clicks. For highly competitive keywords you'll pay several dollars for one click. But you can also target long string keywords that might only get 100 searches a month and the price is often considerably lower.

[fly4fish]

Originally Posted by bikeswine

The Google Keyword Tool tells you what the average price is that people pay for their clicks. For highly competitive keywords you'll pay several dollars for one click. But you can also target long string keywords that might only get 100 searches a month and the price is often considerably lower.

Thanks Bikeswine,

I figured that information was available on the Google Keyword tool, but I have not been able to find it. The keywords I would like to target are quite competitive. The key words would be focused around helmet cameras, of which have been becoming very popular, so I think it will be hard to compete for advertising with companies like GoPro or Contour.

Thanks again, I will look around a little more and see if I can find the average cost per click

[Lucid]

Originally Posted by bikeswine

The Google Keyword Tool tells you what the average price is that people pay for their clicks.

Not quite.

It is an estimate of what an advertiser would likely pay to be in the top positions given an average quality score. Advertisers with better than average QS will pay less. And of course, things don't remain static. Bids change, advertisers come and go, quality changes for all.

There's a column drop-down on the right side in the tool. Click it and select Approximate CPC to show that column.

[dburk]

Hi fly4fish,

Yes, it is possible for you to compete. What you need is a good marketing strategy that plays to your strengths and exploits your competitors weaknesses.

For example, you could display your lower price in your ads and that may generate higher CTR than your competitors. The Adwords Quality Score system will allow you to pay significantly less per click if your CTR is significantly higher than your competitors.

There are often many keywords that your competitors will not be focused on that you can easily exploit. It requires testing and adapting to whatever the marketing conditions present.

[fly4fish]

Thank you all for your very helpful replies! It appears most of the keywords I would be targeting average $1.50 per click. This would make it difficult to break even wouldn't you think on a product with a $20 profit. I would have to make a sale once out of about 13 clicks. I do not know if that is possible.

Thanks again!

[dburk]

Originally Posted by fly4fish

Thank you all for your very helpful replies! It appears most of the keywords I would be targeting average $1.50 per click. This would make it difficult to break even wouldn't you think on a product with a $20 profit. I would have to make a sale once out of about 13 clicks. I do not know if that is possible.

Thanks again!

Hi fly4fish,

That sounds like plenty of leeway to make a profit. What conversion rate do you think is realistic with your product? If you can get your conversion rate to 4%, your Qualty Score to 7-10 and snipe ad clicks below $0.75 you can make money all day long.

Looks totally feasible to me, unless you are saying you expect a low conversion rate for your product. It's possible that you could even make a 2% conversion rate profitable though the volume may not be sufficient to spend time on it.

[huppy21]

Doesn't SpyFu give you an "estimate" of what your competitors might be bidding on a particular keyword phrase?

[timpears]

You might want to try The Content Network section of Adwords, where your ads appear on peoples web sites rather than on the search page. Those ads run much lower than AdWords Search, and there have been many products released that tell you you can get banner ads in this network for as little as a penny a click.

[fly4fish]

dburk,

I guess there is a lot I need to learn about Adwords before I do anything. It gives me encouragement that you think I would have some leeway with only a 4% conversion, because I think I might be able to do better than that.

Do you are anybody else have any good recommendations on an Adwords learning tool. Feel free to suggest an affiliate link. I only have a prototype at this point, so I have a lot of work and time before the product is ready for some test marketing on Adwords. Does anybody have an other ideas on test marketing?

Tim,
You are right, the content network might be a good place to throw out some ads. They do target relevant sites, don't they.

Thank You all very much for the help. I can't believe people are so willing to help. Hopefully I will be in the position to help others.

Chris

[John Williamson]

As an aside, SEMrush will give you a nice competition analysis including their organic and PPC keywords.