Higher CPC in in US?
Recently I have excluded a large group of countries that my company is not targeting (all of Africa, Philippines, India, Russia etc) I took a look at a 12 day period before the exclusion and there were 4,798 clicks that cost $2,190.92. Then I took a look at the 12 day period after the exclusion and there were 2,686 clicks that cost $2,362. How could the clicks be cut in half, but the cost actually be more?
I would also suggest that you review the US data alone for the same time periods and compare your CPC's. Also, did you notice any changes to your QS or Ad Positions? Any changes you make to your account can have an effect on your costs.
You may have more competition in the US but I don't believe that there is an automatic correlation to costs.
Hope this helps!
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In addition to what Tom said, I would like to include that your advertising costs would vary from country to country depending upon the competition that country has.
Recently I have excluded a large group of countries that my company is not targeting (all of Africa, Philippines, India, Russia etc)
I am little confused over this statement. Did you mean to say that originally you were targeting these countries along with other countries and then later on you decided to exclude them?
You were not targeting them but decided to simply exclude them?
If condition 1 is correct, then definitely the cost factor has arised because the countries you are now targeting have higher competition, which has led to increase in the cost but decrease in the clicks. Another possiblity could be low ad rank, low CTR due to which the Avg. CPC jumped all of a sudden. (Just a thought)
If condition 2 is true, then I actually don't think that there was any need to exclude them because Adwords won't necessarily show your ads in the countries which you don't target. See this for details.
Now again there could be many factors which added to more of your costs and lesser clicks. You can cross check with the historical data and make some spreadsheets to actually compare and see the metrics like CTR, Avg. CPC, etc...whether they have influenced this cost or not. Additionally the locations which you are targeting could be the real decider for this rise.
Just a thought!