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Does the CPC matter when the competition of a keyword is LOW?

Discussion in 'Adwords' started by 2DHades, Jul 22, 2013.

  1. 2DHades

    2DHades Power Member

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    Hey,


    There is this keyword in adwords that says $5 CPC.

    However, the competition is LOW, therefore there aren't any (many) advertisers for this particular keyword. Yet how comes that the CPC is $5 if there arent any competitors, is it just showing wrong numbers for such KWs?

    Thanks!
     
  2. Invoker

    Invoker Regular Member

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    My logical sense thinks you would get a lot of irrelevant ad's and sometimes content targeted $5 pc ads.
     
  3. BlueZero

    BlueZero Power Member

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    CPC determines your profit. So, yes it is important.
     
  4. Invoker

    Invoker Regular Member

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    And keeping up with relevance, here's the weather with Tom!
     
  5. Endire

    Endire Elite Member Premium Member

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    2dhades,

    The approximate CPC of a keyword is not derived from competition. The competition actually has very little to do with it. There can be very high competition keywords with low CPC and very low competition keywords with high CPC (as you have seen).
    What determines a keyword's CPC is ad performance among many other variables that Google looks at. A high CPC for a low competition keyword could mean that the particular phrase was very unproductive when ads were run (meaning no one clicked on them).

    Also remember that the keyword tool gives you a snapshot in time. Just like products and services, keyword fluctuate in price and in competition. Just because there is no competition or low competition right now does not mean there was always low competition.

    Hope that helps,

    Shawn
     
    • Thanks Thanks x 2
  6. oyppc

    oyppc Newbie

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    Also keep in mind the match type of the keyword you are searching. Exact may cost more than a broad match and less for phrase. Google's traffic estimator/keyword planner now should give you a ballpark figure or idea of the cost for that keyword with volume estimates. It should not be held written in stone. Set a max cpc for you keyword. Let it get an impression so you can see the position of your ad based on your bid. If too low then raise and vice versa. If you have a high QS score then you may be rewarded for a higher position and pay less then adv. below you. If the keyword has low search volume you should check your location/language targeting, daypartting, match type to see if your restricting impression share. Sometimes no matter what keyword you decide to bid on it may just not be searched that often an thus will never get shown/clicked on.