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What is Expensive CPC to You?

by Desmond Ong
8 replies
  • SEO
    • |
Hi folks,

Haven't been touching AdWords for years and decided to do a comeback but hey, things changed a lot and I just wanted to know what CPC do you think is cheap and expensive? (If you're let say promoting a $47 product)

I've been using Yahoo for sometime and usually my CPC is around $0.50 or lower -- which I think is cheap.

When I ran the Google AdWords Keyword Tool, I saw some average CPC as high as $5 to $10 -- which is shocking, for a Yahoo PPC marketer like myself.

So, what range of PPC do you think is expensive and cheap?
#cpc #expensive
  • Profile picture of the author kingside
    "Cheap" is whatever price allows you to get a decent ROI on your campaign. It's all relative. Adwords has gotten a lot tougher over the last year or so, but you can still get extremely cheap clicks in the right spots.
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  • Profile picture of the author Lucid
    > "Cheap" is whatever price allows you to get a decent ROI on your campaign.

    Exactly.

    $0.50 to promote a product where you make $20 and there's an 8% conversion rate = relatively cheap since you spend $50 to make $160, net profit $110 for every 100 visitors.

    $0.50 to promote the same product but only a 2% conversion rate = expensive since you spend $50 to make $40, a net loss of $10.
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    • Profile picture of the author dburk
      Hi Desmond,

      What is cheap or expensive is relative to your individual keyword/ad text/landing page combination. First you must determine your average earnings per click (EPC), Anything greater than your EPC is expensive and anything substantially lower than your EPC is cheap. For example, if you have a $22 EPC then a $7 CPC would be very cheap. Since you EPC will vary greatly depending on your keyword, ad text, landing page and offer, you must judge this on a case by case basis.
      Signature

      * Get Results - Outsource Your PPC Management |
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  • Profile picture of the author mejohn
    Anything more than free is too expensive for me. I work hard and get top ten rankings, eliminating the need for paying for clicks.
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    • Profile picture of the author Seekness
      Originally Posted by mejohn View Post

      Anything more than free is too expensive for me. I work hard and get top ten rankings, eliminating the need for paying for clicks.
      Nothing is free. Don't forget that your time is worth money. What you value that time as is another story (all depends on opportunity cost) , but don't lose sight of that.
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  • Profile picture of the author Desmond Ong
    Seems like I gotta spend some money if I am to use AdWords. I've been enjoying the low CPC over at Yahoo and spending at $1 for one click and then I have to make a site that has a good quality score is really bothersome.

    It could be fun if you are doing this full time but it's hard for me to juggle between studies and PPC campaigns and my niche businesses.

    Plus, I heard AdWords is screwing with affiliates lately.
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  • Profile picture of the author TomBond
    This is quite a useful tool for working out what your target CPC should be based on a desired ROI - max_cpc.swf
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