Why in Learning proccess the CPC is so brutal?

[harran]

I resumed a campaign that I paused 2 months ago and its not stuck in “Learning” phase for 5 days and it takes almost 3$ for a keyword that has 0.50$ value. Im talking about google ads. Don’t you think thats too much?

I know the price for cpc will go down in a few days but that’s too brutal for the first day imo

 

[harran]

Bumping this

 

[GringoMonkey]

So google can fleece you at the start, where you try to figure out how to run a campaign. Then once you understand what you are doing you will pay less.

 

[harran]

So google can fleece you at the start, where you try to figure out how to run a campaign. Then once you understand what you are doing you will pay less.

Thanks but I didn't quite understood what you meant there.

 

[GringoMonkey]

Thanks but I didn't quite understood what you meant there.

Google are not interested in conversions, they charge you per keyword click. They just want lots of people to come to your site and dont care if they buy or not, as they get paid per visit.

Lets say i own a restaurant and charge you more for a taster of every item on the menu before you can figure out what you like and can order it. If i charge you more for the taster meals, i dont care if you like anything, you paid a premium for the tasters, particularly if i have my regulars that buy up all the good food anyway. That is how Google operates.

When you set up a campaign you test many keywords and go through many attempts to see what works and what does not. That means many people come to the site but dont buy. Google make the same money if they buy or not.

It did not used to be like this but now Google charges you more at the start when you are testing keywords because they can get away with it and know you will keep trying and paying, before you give up on that keyword later realising it does not convert.

 

[harran]

Google are not interested in conversions, they charge you per keyword click. They just want lots of people to come to your site and dont care if they buy or not, as they get paid per visit.

Lets say i own a restaurant and charge you more for a taster of every item on the menu before you can figure out what you like and can order it. If i charge you more for the taster meals, i dont care if you like anything, you paid a premium for the tasters, particularly if i have my regulars that buy up all the good food anyway. That is how Google operates.

When you set up a campaign you test many keywords and go through many attempts to see what works and what does not. That means many people come to the site but dont buy. Google make the same money if they buy or not.

It did not used to be like this but now Google charges you more at the start when you are testing keywords because they can get away with it and know you will keep trying and paying, before you give up on that keyword later realising it does not convert.

And after changing the keyword the campaign will be in Learning phase again so they will fuck you over and over. That’s sad.

 

[roydan]

When you are in learning phrase, Google are experimenting with many different segments of your audience and measuring each's likelihood to convert.
When you run a campaign with a conversion based automation bidding, the cpc bid you go to auctions with is the result of your tCPA*their estimated CvR for that click. So if, for whatever reason Google thought you have 30% chance of converting this click and your tCPA was $10, you paid $3 per click.

Bear in mind that Google's shift to automated bidding in the last couple of years was made to maximize their cpc and not from the kindness of their hearts.

I'm having a hard time giving a general answer because I don't know the specifics of your case. If you want, I'll be happy to help more in PM for free.

 

[harran]

When you are in learning phrase, Google are experimenting with many different segments of your audience and measuring each's likelihood to convert.
When you run a campaign with a conversion based automation bidding, the cpc bid you go to auctions with is the result of your tCPA*their estimated CvR for that click. So if, for whatever reason Google thought you have 30% chance of converting this click and your tCPA was $10, you paid $3 per click.

Bear in mind that Google's shift to automated bidding in the last couple of years was made to maximize their cpc and not from the kindness of their hearts.

I'm having a hard time giving a general answer because I don't know the specifics of your case. If you want, I'll be happy to help more in PM for free.

Sent a PM. Thanks for explaining.