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Old 02-12-2012, 04:42 AM   #1
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Default A question about adwords bidding

Hello,
I used 2 adwords free coupon for my website and i noticed that the click price decrease gradually. The first day the click was about 1.60$ and after few days it was 0.88$ for the same keywords. I wonder if i use an accound with real money will the price decrease as well ? if yes which price would i expect it to reach if for example the first day of my compaign the price for my keywords is 1.60$ or 1.80$ ?
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Old 02-12-2012, 10:23 AM   #2
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Default Re: A question about adwords bidding

Hi Majdi33,

AdWords is a dynamic marketplace where you bid against competitors for the same ad positions. So there is no fixed formula to predict your CPC.

The important thing to understand is that AdWords uses a Quality Score system where your bid is multiplied by your keyword Quality Score to arrive at an Ad Rank score. If you earn a high QS then your CPC will be much less for the same ad position.

The primary component of your keyword Quality Score is your CTR as compared to the average CTR of that keyword system wide. Writing compelling ads that earn high CTR will improve your Quality Score and lower your keywords CPC average.


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