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paying very high for ppc keywords

by asys
12 replies
  • PPC/SEM
    • |
I think i am paying high for keywords on adwords for the niche that I am targeting. the ppc is around $10-12 each click. my keywords are 3 to 4 words on broad match. I have $50 daily limit set so I would get about 4 clicks on this keywords.

my question I guess is this ok to do or am I doing it correct? just want some opinions if this would be ok and if others are paying this high for ppc on adwords?
#high #keywords #paying #ppc
  • Profile picture of the author Moira Yao
    You are indeed paying high CPC for your ads. If you will consider put ads in desktop/Mac apps, it can save you much money. You only need to pay about $0.15-0.20 per ad click.
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  • Profile picture of the author shaunybb
    Originally Posted by asys View Post

    I think i am paying high for keywords on adwords for the niche that I am targeting. the ppc is around $10-12 each click. my keywords are 3 to 4 words on broad match. I have $50 daily limit set so I would get about 4 clicks on this keywords.

    my question I guess is this ok to do or am I doing it correct? just want some opinions if this would be ok and if others are paying this high for ppc on adwords?


    Hey,


    For some people paying $20 a click is ok if they make enough ROI!! However if your losing money on your PPC then what your paying is way to much. You also need to realise that there is a lot of money being wasted on broad match. In PPC you need to try and target as least exact or phrase match. Broad match is not targeted enough and it will cost you a lot of money.


    Just my opinion Hope that helps!
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  • Profile picture of the author LucidWebMarketing
    High CPC costs are subjective and fall into the "it depends" category. In the insurance field, many would think $10 clicks are cheap. But it would be expensive for a $20 product, unless your conversion rate is 50%.

    So nobody can tell you if what you are paying is expensive or not. Has to be put in context and we don't know this until you tell us what you are selling and the going rate for that kind of product and of course, your conversion rate. As been said above, your ROI.

    I'll be happy to pay $10 each time if my average return is more than that, and the higher the better. I would NOT want to pay even $0.10 if my conversion rate is so poor, I lose money. So it's not about the CPC at all.
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    • Profile picture of the author dburk
      Hi asys,

      I agree with shaunybb and LucidWebMarketing, what determines if a CPC is a good depends on the Value per click that you get from that traffic source. It is often the case that a $10 CPC is way more valuable than a $0.10 CPC. In fact it is almost always way more valuable.

      CPC prices on the top ad platforms are not set by the ad platform, it is the advertisers themselves that bid the CPC up to a price that corresponds with the value they receive. A CPC of $10, if combined with a high Quality Score, is an indication of a high value keyword. If however you have a poor Quality Score, you might be paying too high due to the poor performance of your ad.

      Having said that, not all advertisers are able to extract the same value out of a click, so the performance of your landing page, value proposition, branding, customer service, and customer list management all play a role in determining the ultimate value per click that you receive. If you are in a competitive niche, you will likely need to optimize all of those categories to make it profitable.
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  • Profile picture of the author jamescanz
    Originally Posted by asys View Post

    I think i am paying high for keywords on adwords for the niche that I am targeting. the ppc is around $10-12 each click.
    Holy crap... yes that's a helluva lot per click.

    If that's creating a nice ROI for ya, lower the cost (I'm going to assume it isn't)...

    And if it isn't creating a nice ROI, lower the cost.

    You gotta get those numbers down, a lot...

    Otherwise you are going to throw money out the window very rapidly.
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  • Profile picture of the author asys
    Thanks for the input guys. I believe it is little too high i am going to see if i change the keywords from broad to phrase and exact and see if that will get the $ cost down.
    this campaign is running for about 2 weeks now at first i was not seeing much impressions or clicks then i tried going with google's bid simulator option for 1 keyword and raised it where i get more impressions and shows on top. By doing that i got clicks but wow very expensive.
    btw this is for service business so ROI is still to find out, lets see if people requests the services or inquires after clicking.
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    • Profile picture of the author Oziboomer
      Originally Posted by asys View Post

      Thanks for the input guys. I believe it is little too high i am going to see if i change the keywords from broad to phrase and exact and see if that will get the $ cost down.
      Exact match doesn't really exist anymore because they usually show a close variant.

      The CPC will be determined by a number of factors. If your quality score is low then you will pay high and as others have mentioned for some niches the average CPC is far higher than $10.

      In some niches like cosmetic surgery and other surgical services I have clients quite prepared to pay $140 per click.

      There is a good article that you may want to read on the Kissmetrics blog.
      https://blog.kissmetrics.com/adwords...d-exact-match/

      Oh and read some of Perry Marshall or Mike Rhodes' stuff to get a better understanding.
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  • Profile picture of the author fasteasysuccess
    Not sure of the niche you're targeting, but one issue off the bat is your settings at broad. Kill that and use exact. You'll have less impressions or clicks but definitely more targeted and less on the costs of per click.
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  • Profile picture of the author winnermarketing
    calculate your convertion rate and how much you earn by a single sale:

    If you do 2 sale every 100 click and your ear by this sale is about 50$ if you pay 1$/click it means youa CPC is too hight. And now your CPC is 10 times highter!!!!
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    • Profile picture of the author jgsketch
      For one of my clients (Debt Consolidation), they pay anywhere between $15 to $25 a click depending on the keyword. You then have to go in and see how many of those leads turn into actual customers.

      It's surprising sometimes. I've cut out really well performing keywords because they don't turn into clients. It's all about ROI and an expensive click doesn't mean anything without comparing it to the ROI.
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  • Profile picture of the author littlewaynia
    Maybe checking out Bing ads wouldn't be a bad idea?
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  • Profile picture of the author LucidWebMarketing
    The market forces in Bing are the same as in Adwords. So paying $10 per click in Adwords very likely means you'll pay about the same on Bing. And that does not address the fact that, if you do the same mistakes on Bing and have poorly converting landing pages, even if you do pay less on Bing, you can and will still lose money. It'll just take more clicks to realize that.

    I'm not saying don't use Bing. Google is the most-used search engine with about 70% of the market so it makes sense to use Adwords just for that reason. But don't ignore the other 30%, which is a significant portion. The issue is to advertise at a reasonable cost per conversion, not cost per click, on any network. That means to advertise smartly and taking advantage of each particular ad network's ways of doing things. There are some subtle differences in Adwords and Bing where one approach may produce great results in one but not so much in the other.
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