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Simple Questions about PPC Adword campaign and country targeting!

Discussion in 'Making Money' started by loveghost003, Sep 30, 2014.

  1. loveghost003

    loveghost003 Regular Member

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    Hi, sorry about that but my question will seem really primitive since I'm new with PPC Adword advertising. I'm watching a PPC Adword creating campaign video on youtube and there is a sentence I don't understand:
    "The more targeted your reach the less traffic potentially you will get"

    1- So what does this mean, if I have $5 and the click on my ads will cost me $1, that's mean I will get only 5 clicks. So what is the diffidence if I target USA or Chicago or even world wide? Because in all cases I will get only 5 click!?

    2- How can I know how much my competitors click is? I mean it supposed that Adowrd tell me that the keyword (weight loss) is cost 3$ per click and your competitors mostly limit the 1 click to $3, like facebook do, because in the video I'm watching I didn't see what is the CPC for the keyword, so how can I know the CPC for my keyword to decide my bid and budget?

    3- What if I make my cpc too low more than my competitors? doesn't this mean I will get more clicks higher than my competitors? or not?
     
  2. johnconnor

    johnconnor Regular Member

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    Q1: You need to know what area you want to target. For example, if you are a plumber in Chicago it doesn't make sense to target the whole USA or even worldwide. You only operate in Chicago, therefore you'd only target Chicago and eventually some suburbs of Chicago. If you have an ecommerce store located in the US, you might want to target the whole USA but not worldwide if you do not offer international shipping. If you offer something suitable for an international audience you should think about your target group and start with a couple of selected countries (e.g. only english-speaking countries, rich countries, etc.). If you simply target all countries there is a high chance that you will waste most of your clicks to countries that have a cheap CPC but have a low potential. For example if you have a super expensive product but your ads will be shown mostly in 3rd world countries where people do not have that much money to afford your product your chance to get sales will be very small. So you need to think about what countries you want to target and why. I'd also suggest to create campaigns for each country so you can see how each country performs easier. if you target many different countries you might want to set up campaigns by continent and then later drill down on best performing countries.

    Q2: You can use PPC spy tools but in the end its not that important to know how much your competition is paying. The CPC suggestions given in the Adwords keyword tool are guesstimates only and far from correct. You can use the average CPC bid given by the keyword tool and after getting clicks on your ads you will see how much you pay for each click and you will also see your ad ranking and then you can adjust your bid and budget accordingly. So, if you pay an avg. $1 per click but your ad is ranked on avg. in pos. 7 that means that you need to increase your CPC bid in order to get a better ad ranking. Best spot for ads is #2 to #4 (its not necessary for the #1 spot). you also need to check your quality score - if its low you need to work on your campaign structure, ad copy and your landing page to make it more relevant and get a better QS. The higher your QS, the better ad ranking you will get and your CPC will go down as well.

    Q3: If you bid too low your ad won't show or will show only in bad positions or on 2nd page of google. This in turn will make your CTR drop and this will result in a low QS. So its better to start with a high bid in the beginning and then later reduce the CPC in small steps (but only until the point that you don't drop from your favorable ad position, for example #3).
     
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  3. loveghost003

    loveghost003 Regular Member

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    WOW, Thank you, I really appreciate your in detail response :)