AdWords CPC

Hi All,

I'm looking at advertising on some keywords that are around $5 / click, based on AdWords recommended first page bid.

Can you give me any idea of the percentage rate these clicks could come down by if I got some decent CTR... if at all?
(e.g. -10%, -20%, etc. from what you have seen in the past).

I know this is all relative to competition etc., but I'm trying to get an idea of what others have experienced.

Thanks!

Mate anything above 1% is damned good and often unrealistic on G Adwords

Thatchman said:

Mate anything above 1% is damned good and often unrealistic on G Adwords

Click to expand...

Do you mean 1% drop from $5 / click? (e.g. a $5 click will come down to $4.95 / click)

That is what I'm tying to figure out. How much will the CPC drop once the keyword starts getting some CTR behind it

i'm new to adwords . i think when ad quality score increase the price drop . but i don't know how much .

you can set the max cpc you want to pay ...and use enhanced cpc feature . but my advice to not pay much .

cpaforever said:

i'm new to adwords . i think when ad quality score increase the price drop . but i don't know how much .

you can set the max cpc you want to pay ...and use enhanced cpc feature . but my advice to not pay much .

Click to expand...

Yes, that's how it works. The score mainly based on your ads CTR.

I'm trying to gauge what discount people have seen on a keyword after they have started getting some metrics on their keyword (i.e. CTR).

I have heard figures like -30% being the maximum, but I'd like some first hand accounts...

mrtwister said:

Yes, that's how it works. The score mainly based on your ads CTR.

I'm trying to gauge what discount people have seen on a keyword after they have started getting some metrics on their keyword (i.e. CTR).

I have heard figures like -30% being the maximum, but I'd like some first hand accounts...

Click to expand...

I have seen that the relationship between CTR and CPC is generally linear:

So If youre paying .50 at 5% CTR
then youll prob pay .25 at 10% CTR

QS (Quality Score) is also important to consider. If by increasing from 5% to 10 you increase your quality score you'll pay even less.

Quality Score. Nearly everything is based off QS and it's based mainly of your CTR relative to competition as you said yourself. So there is no set answer of “if I get 10% CTR instead of 5%, how much will my CPC be”. It will depend on what the mean of competitors is. Also, since everything is in flux – new advertisers come in, others leave, bids change, some improve – the answer today, if you could calculate it, is not the same it could be tomorrow.

The recommended bid is just that, a recommendation to get the top spots. Since the system doesn't know your QS, it assumes the average and of course, uses the data it has currently available. We do know the formula to calculate your cost so if you have a QS of 5, if you increased it to 7, your CPC should be about 30-40% less but that's assuming many things. In practice, it doesn't work that way. It is certainly not linear.

The key is improving your QS because the higher it is, the better you are protecting yourself against competitors with lower QS trying to rank higher with higher bids as well as those already with good QS who are likely to bid what is recommended.

Don't listen to those saying it is unrealistic or impossible to achieve certain results in Adwords. QS of 10 is possible and it doesn't necessarily mean you need a CTR of 10% or more. It depends. Also, even if you have a QS of 10, it is possible to further drop your CPC.