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Understanding CPC - High Competition, Low CPC

by corrosion33
2 replies
  • SEO
    • |
I've just launched my first amazon site and I have plans to do crossover promotions with YouTube, blogging etc... and I wanted to see if adding Google adwords into the mix would be beneficial so I launched keyword planner, but I'm having a little trouble understanding.

I've tried googling this answer, and even searching through this forum but I couldn't find a clear cut answer so I thought I'd ask:

What does it mean when the competition is high for a keyword, but the CPC is like $0.29?

From my understanding, CPC is cost per click, so if I target a buyer keyword, and I get a click at $0.29, I'd see that as worth it.. but on the other hand, it seems too good to be true.

Clarification would be super appreciative!

Thanks
#competition #cpc #high #low #understanding
  • Profile picture of the author corrosion33
    Looked into Long Tail Pro (and may even get into Platinum), had some questions answered and it all boils down to there's more it than just competition and CPC
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    • Profile picture of the author paulgl
      There's more to it than that.

      Google sets the bid. People forget that.

      Not everyone that bids can get an ad seen. People forget
      that more often. Minimum is .29, you think you can be a wiseguy,
      bid $5, but google still won't allow you in.

      "Competition" is only part of the big picture of adwords.

      It's about the nature of the keyword, your page, and that of anyone
      else that is interested.

      People, I think, are under the false impression that google just opens
      anything and everything up to an auction, and the highest bidder wins.

      It does not work that way.

      The only real way to know a lot about any keyword that you question
      like that, is to start trying it.

      Overly simplistic scenario on purpose:
      Miniflashlight costs 3 bucks. Millions buy them. So, one could conclude
      that it would be high comp. But would anyone bid $4? $5? To make
      a profit of perhaps a buck? The top sellers may get an ad for 50 cents
      or so. If you are not one of those stellar sellers, you can bid $10 and
      see no ads. But then they would wonder why the minimum bid
      appears to be "only" 50 cents.

      Google has got use some sort of robotic smell test to set max and min
      prices in some cases.

      Paul
      Signature

      If you were disappointed in your results today, lower your standards tomorrow.

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