$19 max CPC for my keyword???

[csa_dummy]

Yes, that is correct. It is so out of this world to pay that much.

To know more about my business, it is B2B wholesale goods. Average transaction is around the three-figure range ($100-$999). But still, it is unbelieveable to pay that much.

It was suggested to start off my current initial bid at half the amount of the max CPC, which is $9.50. That's still out of this world. I cant imagine paying that much.

I ended up bidding $5 for that keyword.

Prior to revising my ads, I was currently bidding $2.00 for that keyword.

Gray

[Brian_Mahaffey]

Originally Posted by csa_dummy

Yes, that is correct. It is so out of this world to pay that much.

To know more about my business, it is B2B wholesale goods. Average transaction is around the three-figure range ($100-$999). But still, it is unbelieveable to pay that much.

It was suggested to start off my current initial bid at half the amount of the max CPC, which is $9.50. That's still out of this world. I cant imagine paying that much.

I ended up bidding $5 for that keyword.

Prior to revising my ads, I was currently bidding $2.00 for that keyword.

Gray

Try placement targetting on the content network.

I have a similiar product where ave cpc for the keyword is $12 and I pay about $0.18
using placement targeting (and yes it does convert).

[Web Dummie]

What position is your ad ending up in with your $5 bid?

Have you made attempts to dominate those expensive keywords in any other form?

[dburk]

Hi Gray,

"Maximum" CPC is what you are willing to bid, "Average" CPC is what you are likely to pay and "Minimum" bid is the amount you need to bid for your ads to appear on the first page of search results. If you set your maximum bid at $19 you are not necessarily going to pay that amount unless others are bidding as high.

I assume you already know that different advertisers pay different amounts for the same ad position on the exact same keyword. If your Quality Score is not high, then you must pay much higher than other competitors for the same ad position. You should insure that you have a good or great quality score, else you are penalized.

There are other reasons that you may be paying an unnecessarily high CPC. If you are bidding on a broad term instead of exact term, you are paying too much. If you have selected a term that has some ambiguity, and you haven't made extensive use of negative keywords, then you are paying too much. If you haven't researched your keyword and found all the likely long-tail versions, then you are paying too much.

PPC advertising can appear deceptively simple, it is not. Since you are competing in a highly competitive market you must acquire the skills necessary, or your costs will be much higher than they could be.

If you are not willing to devote a substantial amount of resources into mastering PPC management, then you would be wise to get out while you still can. The business world is not kind to those who lack the skills to compete.

[Dave Ward]

You say avg transaction is $100- $ 999, but you don't say if there is repeat business at that price ? If there is then it comes down lifetime customer value. Either your competitors know this and can make money on that keyword at $19, or they have more money than sense. Only way to know is test and have a clear understanding of your cost of sale. If $19 is too much, then look for other words within the market you can test first.

[BigVin]

bidding on a broad term I'm guessing?