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Can someone help me figure this out?

Discussion in 'Adwords' started by HatMoney, Oct 29, 2016.

  1. HatMoney

    HatMoney Newbie

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    I found a guy that posted his adwords reports and I found this photo: http://i.imgur.com/C7S7ZIR.jpg

    As you can see he is running a video campaign and his currency is VND (Vietnam Dong)

    As you can see, his CPV is around 25 VND, it's 0.0011 Dollars

    First of all I tried to understand how his CPV is so low, because adwords didn't give you an option to put lower cpv than 0.1 Dollars, I asked this guy and he gave me the answers, he's starting a campaign and when the campaign approved, he's changing the CPV to 0.0011 dollars (25 VND) , I tried that and it's works.

    But here is the problem, after doing that, the campaign didn't get any result, no traffic and clicks at all,I asked him again why, and got no answer.. as you can see in the pics his results are really good, but I have just 0 results.

    He said that he's targeting all countries and all languages, and only 4 large keywords..

    Can someone help me figure out how it's happening, why his result are so good and mine not ? thanks.
     
  2. Takoona

    Takoona Regular Member

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    I don't know, maybe the bid is too low in Vietnam Dong! Sounds like a porno vid. Attack of the Vietnam Dong lol
     
    Last edited: Oct 29, 2016
  3. HatMoney

    HatMoney Newbie

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    Lol the dong..

    I tried that, Created a new account in VND, did the same thing, and no results.
     
  4. Takoona

    Takoona Regular Member

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    Could the results be fake? Using / targeting different keywords perhaps..
     
  5. HatMoney

    HatMoney Newbie

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    No the result are real, this dude have many more pics and I know his channels, he's getting a lot of videos.. Can't understand what i'm doing wrong, I HAVE TO FIGURE THIS OUT!
     
  6. Ganie

    Ganie BANNED BANNED

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    First of all, it ain't possible to go below $0.01
    Second, ask him for more info. Like his Ad Details, Countries Targeting and all.
     
  7. LucidMarketing

    LucidMarketing Regular Member

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    You can bid as low as the lowest unit in your denomination. So in US, that's one cent. That means you could not have a CPC lower than that.

    I assume in Vietnam, you can bid as low as 1 VND. If you do the conversion, that is lower than one US cent. Indeed, you need 220 VDN to make $0.01. But that doesn't change the fact that you can bid as low as 1 VDN which is a fraction of a US cent.

    The problem is that you are not operating in a vacuum. There are other advertisers you are competing with. If you lower your bid, you also lower your ad rank. Ad rank is your quality score times your bid.

    As I recall, Google uses the current day's conversion rates to put everyone on the same level. So if a currency is 1/10 of the US dollar, their bid is adjusted by that much so that it compares to a US bidder and every other advertiser in the world, regardless of the currency each uses.

    Since you lowered your bid, your ad rank is also lower. Other advertisers are ahead of you (higher ad rank) and thus you show less often, if at all if you lower it enough. Google after all wants to make money as well as cater to the advertisers (and publishers). That is why they have this system: it maximizes revenues.

    When you advertise in PPC, you need to understand all of this: how ad quality and bid affects your ranking vs other advertisers. You are focusing only on CPC which is myopic and not even the thing to focus on.

    His quality is likely very good with a CTR over 10%. The question is if he can monetize those clicks. I see his conversion rate is just 0.6% and each sale would have to be 4000 VDN to start making a profit. The column says earned subscribers so this may be a monthly recurring earning and that 4000 would be over the lifetime value of the subscription so that may help him in the long run.

    Focus on maximizing your click rate and thus your ad quality. I'd gladly pay $0.50 all day per click if I get a 10% conversion rate rather than $0.05 with a rate of less than 1%. Paying less per click means nothing if your ultimate goal of making more revenues is not achieved.
     
  8. HatMoney

    HatMoney Newbie

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    Thank you a lot for that great answer!
    I understood everything, everything is about the quality, but if you say that low cpv ( not cpc) doing a bad quality ad, so how this guy doing that, he's using such a low cpv and getting amazing results, I saw his revenue, he's doing a ROI over here, he is doing more money than spending, he posting his youtube channel on those ads, and making more money from the ads on those videos by the views and the earned views that he gained. how can you explain that? if you want pics send me your skype username
     
  9. LucidMarketing

    LucidMarketing Regular Member

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    High quality and lower CPC go hand in hand. That's how the system works. You are rewarded with lower costs for having higher quality.

    In the end however, you still need to generate revenues. I've seen advertising campaigns that generate little revenue or are losing money without realizing it. We don't know the specifics of this guy's campaign. All I can tell is that he's getting a certain view rate that is seemingly very good and paying a certain amount for them. Beyond that, no information that is useful so we don't have the whole story. All I can say is that a 0.6% conversion rate doesn't sound good if he's getting interest in his ads but few convert. It points to a possible problem with the landing page and possibly poor targeting of ads. I think the latter as you said he's using four keywords which given video ads, is likely very inefficient.