Adwords Questions and High CPC!

7 replies
  • SEO
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Hi,

Several days ago I started researching everything about how adwords, keywords, CTR and conversion work in order to educate myself enough to not waste all of my marketing budget on dumb decisions.

There are several things I haven't found answers for and I hope you can help.

1. Broad, Exact or Phrase?

I've learned that using Broad keywords is not a good idea as they are too unpredictable, but Phrase seems like a good idea to me. I've prepared a nice amount of keyword negatives by scraping google suggestions and I was wondering if it's a good idea to put a two word keyword as a phrase with additional negatives? Would that still be too risky?

2. Phrase and CPC.

If I use a phrase say "internet monitor" I get a first page bid at around $1 which is pretty fine with me, but when I add "internet monitor usage" phrase, first page bid rises to $4 which is outrageous in my opinion. How is that even possible? I'd have to be selling a product for $100 and maintain 4% conversion rate just to get even! Can someone explain to me how can this be profitable for anyone? If it's the lowest bid, others must be paying much more for clicks and only some of them have products for 100$. I know there is the quality score that may rise with good CTR, but I have no idea how much it can lower your CPC and by the time it even gets lower I'd be broke. For me it's impossible to even consider competing for this keyword.

3. Phrases

Other question I have is that when I put an ad for "internet monitor" keyword for 1$ per click. Would it still show up if someone enters "internet monitor usage" in google if the lowest first page bid for such phrase is 4$? I think it won't, but I wanted to make sure about it.

4. Exacts

I've read several posts here where people say that they built up a list of 1000 longtails and they pay $0.20 for adwords clicks. From my experience when I tried out different longtails, the longer the keyword is, the more it costs. Am I missing something obvious about longtails or am I just failing at researching them? Also I think that since google introduced their search suggestions, there is really no way of inventing your own longtails as people will mostly rely on the suggestion tool and that lowers the overall possibilities to target.

5. Spying on competition

I've used keywordspy.com to see some of the keywords my competition uses, but the competition is fierce and I the lowest CPC I get would require me to have 10% conversion rate or more to make any profit. Should I totally dump the keywords my competition uses or is there some trick I should know about?

Thank you for reading till this point.
I'm having real trouble here launching my first campaign for computer monitoring software as it seems adwords are completely filled up by competition that's been around for 10 years even.

Best regards,
Kuba
#adwords #cpc #high #questions
  • Profile picture of the author Greedy
    6. Devices
    If you site doesn't run a mobile phone go into Settings and turn off mobile traffic to it. I also like to kill the tablets for starters.
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    • Profile picture of the author movemaker
      yea you might want to take away that mobile option..you will get useless costly traffic.
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  • Profile picture of the author lovboa
    Banned
    7. Read the TOS BEFORE you run your campaign.

    Not to do with CPC, but still important.

    A lot of times, they won't reject your ad. They'll run it then send you an email a few days later telling you you're banned for life.
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  • Profile picture of the author kgrecki
    Yes, I disable mobile and tablets right away as they are not my target nor is my site optimized for them.

    I guess I didn't make it clear enough, but each of the sections I wrote is a question
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  • Profile picture of the author Lucid
    1. A two-word keyword may be too short-tail. It's rare that I use them but it depends on the product. Think longer tail. Use a keyword that exactly describes what you are selling. If you do that, you won't need as many negatives.

    1b. Yes, avoid broad match. Use the new(er) broad match modified instead and avoid short tails. Use phrase and exact matches too.

    2. You are assuming that you will be paying what you bid. The first page bid is exactly what it says: estimate of how much you should bid to be on the first page (top of page really). It's based on your QS and obviously the historical bids of others for that keyword.

    Remember that advertisers decide what they bid. It's market driven so the market has decided that a keyword is worth more. Doesn't mean it's profitable for everyone. Again, don't assume that if a keyword's FBPE is $4 that's what you'll pay or even that's what everybody pays. The FBPE will be different for everyone.

    3. Yes, "internet monitor" may still trigger your ads. Those bidding on "internet monitor usage" will have a bit of an advantage however. The keyword is more specific so those searching that keyword are more likely to see ads for it.

    There are many factors which will determine which ads are served, many of which you have some control of. The main one is ad ranking which is your QS times your bid. There's also geography that comes into play in many cases, advertisers' individual budgets and ad inventory. I'm sure there's more.

    4. You don't really need hundreds or thousands of long tail keywords. Go ahead if you've got the inclination and time. To explain, let's take an actual campaign I'm managing.

    Client sells air compressor parts. One group is a belt for the Husky H1504ST. I started the group with just broad match modfied keyword

    +belt +husky +h1504st

    This was to gather data on how people typically search for this part. It describes, without using superfluous words, what the part is so should be no problem, at least, minimize unwanted and irrelevant impressions. There has been almost 2600 impressions since May of last year.

    As it turns out, most people (at least the data Google gives me) seach on "husky h1504st belt". So I add it as a phrase and exact match to my list. Note this keyword is about 12% of the total impressions received. There are very few searches on "belt for husky h1504st". If you wanted to add this keyword, feel free. But, your QS will not likely be that much different and therefore your CPC won't be either.

    You are still competing with those using the broad match "belt husky h1504st". If their bid is high (or a low QS), just because you have a more exact match to the query, it really doesn't affect your CPC. The whole system is also very fluid.

    For example, this group averaged a $0.23 CPC. The keyword "husky air compressor h1504st belt" was searched 10 times (got 7 clicks) but the CPC was $0.30. It's very relevant and high QS (triggered from the broad match) but its CPC is higher than the average for the group. Why? Well, maybe a competitor at one point was bidding high and affected a few of those clicks which may have cost $0.40 and other clicks $0.20. Who knows.

    Go ahead if you want with longer tails but you must decide if the work involved is worth it for the returns you'll get. You could put 90% of the work on keywords that only get 25% of the total impressions. My suggestion, the way I normally do things is, start with broad match modified keywords, enough words that describe your product, "belt husky" is too short and not descriptive enough since there are many models, each with a different belt. After enough data, check to see what searches triggered your ads. Add the most searched ones (if appropriate) as phrase and exact matches. Look for possible negatives and add those. Adjust ads. For instance, the ad may have said "Belts for Husky H1505ST" but most searches are "husky h1504st belt" so you may want to change the ad to the singular and move the words in the same order of the most common searches.

    5. Forget "spying" on competitors. Concentrate on the best campaign you can make. Knowing what the competition is doing, if such things were possible, does not help you. Obviously the keywords for the belt example above should be the same as yours. Besides, short of these tools having direct access to your competitors' accounts, they don't know what keywords they really use: the exact ones and the match types.

    Also, doesn't mean that a competitor uses Adwords or other PPC that they are doing it well. Concentrate on YOUR own campaigns, make sure you use the proper keywords for the product and create ads that make people want to click on them. That's the key.
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    • Profile picture of the author kgrecki
      Thank you so much, Lucid!

      I can't express how happy I am that you spent your valuable time to answer my questions.
      Everything is much clearer now and I'm sure I'll put your advices into good use.

      Great post!
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  • Profile picture of the author jyotsna
    hey frnd..
    use google adword keyword tool for keywords..
    choose keywrd with high global ranking and low competition
    i would suggest you to nt follow paid method for gaining traffic..
    use organic way of gaining traffic by using seo..!!
    happy blogging..!!
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