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Keyword Planner bid and First Page bid?

Discussion in 'Adwords' started by aadelmalik, Jan 16, 2016.

  1. aadelmalik

    aadelmalik Registered Member

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    Good evening guys, this is my first time using adwords and I would like to ask you some questions regarding bidding.

    Are the prices on keyword planner really accurate?
    Because I have 5 keywords total 4,000,000 searches, competition: low, cpc: $0.05
    Isn't this really cheap? I am targeting my own country so here the competition is close to non really.


    But a friend told me that there is a "First Page Bid" which is really expensive. Can you guys tell me more about it?
     
  2. LucidMarketing

    LucidMarketing Regular Member

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    Things you need to understand about the keyword planner:

    1. The column says "suggested bid". That is not what you would be paying. It used to say something like estimated CPC but don't take it as such anymore.

    2. It is a number calculated to get in the top position, not the first page (it may have been that in the past). It is based on an average QS. If you have better QS, you should be paying less.

    3. It is based on historical data.

    Let's say many advertisers bid on a keyword and willing to bid within a narrow range of $0.30 to $0.40. The estimate bid might be $0.35.

    But if a few advertisers bid well outside that range, either much higher or much lower, that could skew the result. The system can only work with the data it has. That's why it is called an estimate.

    4. There is always competition somewhere. I believe the planner uses worldwide data so that can skew results for you.


    I don't pay much attention to the planner's CPC. My goal is maximizing revenues. I'll use the planner as a guide to set initial bids on a new campaign if I need to but I often don't consult it nor need to.

    You should also ask yourself if these keywords are relevant to your product. Four million searches is quite high (I assume that's monthly) and I'm guessing these may be one-word keywords or extremely generic. Generic keywords are typically not profitable.

    You ask if this is cheap. That is a relative term. But you are focusing on the wrong metric. You can make more sales, revenues and profits by paying $1 (and where most others are paying around the same) than if you were paying five cents. In that case, $1 would be average, cheaper would be maybe 50 to 80 cents and really cheap below 50 cents. But you may be better off paying $1.
     
  3. LucidMarketing

    LucidMarketing Regular Member

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    Just to expand on the above a bit more. I've just looked at a campaign. The current bid is $0.85 and has been since July. The keyword tool currently suggests $0.82

    The ads have been showing in first position more often than not over that time, about 85% of the time. The CPC however has been between $0.32 and $0.49 with a QS of 9 (average: some are 8, others 10) with CTR between 23% and 30%.

    The CPC differences may be due because I do test different ads often and the QS may have something to do with it. But there are also competitors who may be trying different ads but also increasing their bids to try to overtake my first place position. Nothing I can do about that. But at least the ROI has been very steady despite the fluctuating CPC.

    The point is that the whole thing is in a constant state of flux and nothing is static. The keyword planner can only make suggestions based on what it knows now. Your real job is to increase the business revenues.
     
  4. aadelmalik

    aadelmalik Registered Member

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    Thanks Lucid for the response, well the Keyword is a 2 word keyword, it's for loans. Loans, Payday Loans, House Loans, Car Loans are the keywords.
    I setup new keywords now, now it says 0.25 First Page, 0.38 and 0.40 and 0.50 first page. I know that these keywords are profitable and I know the competition is low, because I am the first one since the new law in my country that allowed online advertising for loans, no one is advertising here, not even banks.

    I set them up on a bid 0.10 on two Ad Copies, super targeted, well keyword as I said it's for PayDay loans or as it's called in my country "Short-Term Loans" as the keyword is.

    Also how accurate is the Avg. Position?