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How accurate is Google Keyword Planner regarding CPC

by Mr Kim
5 replies
  • PPC/SEM
    • |
Hello everyone!

When I use Google Keyword Planner I realize, or at least suspect, that it is very wrong regarding the estimation about how many clicks you should get, and how much the cost per click should be, if setting up a campaign with some keywords, a max bid and a daily budget.

For example, I have choosed 22 keywords, max bid 0,28 USD and daily budget 24,33 USD and Google Keyword Planner now estimates that I will get 5925 clicks for a total cost of 740 USD or 0,125 USD per click.

If I instead choose max bid 3,04 USD and daily budget 6083 USD Google Keyword Planner estimates that I will get 8099 clicks for a total cost of 13420 USD or 1,66 USD per click.

So, regarding to Google Keyword Planner I would only only get 2174 more clicks if I spend 13420 USD instead of 740 USD, or 1,66 USD per click instead of 0,125 USD.

I really don't feel trust in these mathematics, and I really don't believe that I could get 5925 clicks for only 0,125 USD each. Or should I?

What is your opinion and experience regarding Google Keyword Planner?

If someone want's to know I experiment with a US campaign for baby shoes.
#accurate #cpc #google #keyword #planner
  • Profile picture of the author dburk
    Hi Mr Kim,

    The AdWords Keyword Planner tool will show you accurate data for search volume, average click costs, and competition levels, however cost estimates are just that, an estimate based on the average performance of the average advertiser. If you can perform like an average advertiser then it should be pretty close to what you can expect, but that's a big if. The CPC will very quite a lot for each advertiser based on the individual advertiser's Quality Score.

    Since an advertiser that has earned a superior QS may be paying only a fraction of what the advertiser with an average QS is paying, estimates based on averages isn't going to be very close to actual results for most advertisers. You have to adjust what you see in the estimates to reflect your own QS and also understand the general makeup of all of your top competitors before the number can be used for a reasonably close estimate.

    In addition to Quality Scores varying you actual costs, ad positions and location targeting are also major variables that will effect your actual cost. Without all of those variables taken into account, estimates based on averages are pretty much useless, except for comparing one keyword against another to see which are relatively higher, or lower, in cost.
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  • Profile picture of the author Mr Kim
    hi dburk, and thanks for your answer!

    You remind me about something I have heard about before, but completely forgot. Google wants to reward loyal advertisers that does'nt quit campaigns all the time, but that continues to advertise for long periods.

    I guess there is nowhere to see your Individual Quality Score?

    By the way, do you know if Facebook is the same, that they also have a system that rewards loyal and long-term advertisers?
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  • Profile picture of the author dburk
    Hi Mr Kim,

    Yes you can view the individual keyword Quality Score for your account in the web interface:
    You can check your Quality Score by looking within your Keywords tab. There are a couple ways to check your Quality Score, as shown below.

    Run a keyword diagnosis:
    1. Click the Campaigns tab at the top.
    2. Select the Keywords tab.
    3. Click the white speech bubble next to any keyword's status to see details about that keyword's Quality Score. You'll be able to see ratings for expected clickthrough rate, ad relevance, and landing page experience.

    Another way to see your Quality Score is to enable the Qual. score column:
    1. Click the Campaigns tab at the top.
    2. Select the Keywords tab.
    3. Look for the Qual. score column in the statistics table. If you don't see this column in your table, you can add this column by doing the following:
    4. Click the Columns drop-down menu in the toolbar above the statistics table.
    5. Select Modify columns.
    6. Select Attributes.
    7. Click Add next to Qual. score.
    8. Click Save.
    All major ad platforms, including Facebook have some sort of Quality Score system. Quality Scores are not based on long-term loyalty, but on ad CTR performance as compared to your competitors' ads.
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    *     Don Burk Advertising & Marketing - www.donburk.com

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  • Profile picture of the author Mr Kim
    Oh, I understand what you mean now. Thanks. But I still think Google have some kind of "hidden score" that promotes loyal and good advertisers. But I guess that's not official. Or maybe I'm wrong, but I have read it somewhere on this forum I think.

    However, I can not tell 100%.
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  • Profile picture of the author bookmarking
    The search estimates on Google's keyword tool won't help you take an informed decision. At least I never rely on it especially when it comes to phrases that have lower search volume. The best thing to do is the setup of a small test campaign.
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