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Adword CPC Question

by babywarrior
4 replies
Hi Guys,

another noobie question from me.

You see i realise that for me to gain 1st spot for a particularly important keyword, i need to bid say $10 thou google will only charge me a CPC of around $2. The thing is lately i notice the fluctuation increasing. According to the report i got from adwords, a particular keyword got clicked at 2pm for approx $2 but at 10pm for the same keyword google charged me $9! than the next click goes back down to approx $2 again. this has been going on for some time thou the fluctuation does vary. At times it goes to approx $2 than to $6 than to $2 at times it just double.

As such i was wondering what could the possible reason be? QS dropped and increase all of a sudden? Competitor increasing their bid to outbid me and clicked on my ad before dropping their bid?

Additional info is the avg ranking for that keyword has been at a stable 1st spot for $2 until the recent fluctuation. QS for the keyword has been at 10 for a 2 months or so.

Hope i can get some advice on what could the possible reason be or has anyone encountered the same problem as mine? :confused:
#adword #cpc #question
  • Profile picture of the author ChrisBa
    Are your keywords broad, phrase or exact?
    If you are bidding $10 then be prepared to pay $10 per click
    It also might be competition, less competition for $2, more for $9, but with the details you provided it's very difficult to say
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    • Profile picture of the author babywarrior
      It is an exact keyword.
      I am prepared to pay $10. The competition has remained the same only 6 bidders. This is a very very small market and it is actually a JV. In fact it is so small that the other 5 bidder are all people whom we know. I even know how much their budget is for advertising and i would say it is impossible for them to maintain it at more than $3 cpc. I had even managed to view a contract of the guy whom is always in 2nd position so i have a good idea how much he is paying to the agency per month and what is the budget. The main reason why we could maintain a higher CPC is due to conversion and pricing.

      As for ad wise, i have been monitering quite often and i would say that their ads are all showing 24/7.

      CTR for my ads are currently at 16%

      Hope all this information would help.
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  • Profile picture of the author tryinhere
    you need to lower your bid to the $ amount you are prepared to pay. setting it at $10 to get number one spot is incorrect per say if your only paying $2 when clicked.

    It seems like others are bidding and as such because of your $10 limit your price to maintain position one shoots way up.

    So unless your costs can cover the $10 cpc / conversion ratio then yes drop your max bid down to a level where you make the profit ? / $2
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  • Profile picture of the author entrepenerd
    This is most likely due to another bidding using time-based bidding restrictions, or your lower bids are being seen at times when other bidders have run out of budget.

    Less competition means lower price, more competition means higher price to hold the same spot assuming that your competition is also bidding high on the same terms.
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