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CPC and First Page Bid Estimate

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Guys i'm bidding for a few keywords (20 to be exact) which have no competition. I'm targeting US and there are no ads for these keywords (they are not commercial keywords).

In the keyword planner, when i found these keywords, it showed an average cpc of $0.05 - $0.10 and i thought that's correct considering they're not commercial keywords and there are no ads for them.

I created a campaign for these keywords, set the cpc to $0.20 and i found out that the ads were not showing, and they had the status "Below first page bid" and the first page bid estimate was $1.5 - $2.5 (around 20 times more than in the keyword planner).

I don't know why there's such a high first page bid estimate considering 3 things:

1) the estimated cpc in the keyword tool ($0.05)

2) no one is bidding for these keywords, no ads are shown whatsoever

3) my quality score is as high as it gets, all keywords have 9 or 10 out of 10

 

Is this something that google does to squeeze more money out of us or am i doing something wrong here?

1 Expert replyverified_user
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Marked as Best Answer.
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Accepted by MosheTLV (Top Contributor)
September 2015

Re: CPC and First Page Bid Estimate

Explorer ✭ ☆ ☆
# 5
Explorer ✭ ☆ ☆
Hi Daniel,

I've seen situations like that as well, where there appear to be no other competitors and yet the bid required is still higher than the Keyword Planner. If your quality scores are high and your ads still aren't appearing for those keywords, the only option left is to raise your bid. I would recommend testing higher bid amounts until you find one that gets you the traffic and return on ad spend you want. Once you do find that sweet spot, you can then over time try lowering your bid bit by bit. I usually lower bids gradually, just a few cents at a time.

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Re: CPC and First Page Bid Estimate

Top Contributor
# 2
Top Contributor

Well... A few points to remember here;

Long gone the days with no competitors. I doubt if you could find a single keyword (with the exception  of scientific / engineering / medical academic  terms) which hasn't been bid. And even if you don't see the competitors, that doesn't mean they are not there. Thus, the minimum bid is based on all other advertisers  who have been bidding on a given keyword.,

 

Furthermore; first page bid estimate is an estimate with (my opinion) quite a huge margin of error.

I would first look at historical data for these keyword (using  the keyword planner) and use these  numbers as a  "first shot"

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: CPC and First Page Bid Estimate

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
my keywords indeed have no competitors and they fall in the scientific / engineering category

and what should i be looking for in the historical data?

Re: CPC and First Page Bid Estimate

Top Contributor
# 4
Top Contributor
Check the average CPC for these KWs
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’
Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: CPC and First Page Bid Estimate

Explorer ✭ ☆ ☆
# 5
Explorer ✭ ☆ ☆
Hi Daniel,

I've seen situations like that as well, where there appear to be no other competitors and yet the bid required is still higher than the Keyword Planner. If your quality scores are high and your ads still aren't appearing for those keywords, the only option left is to raise your bid. I would recommend testing higher bid amounts until you find one that gets you the traffic and return on ad spend you want. Once you do find that sweet spot, you can then over time try lowering your bid bit by bit. I usually lower bids gradually, just a few cents at a time.

Re: CPC and First Page Bid Estimate

Collaborator ✭ ✭ ✭
# 6
Collaborator ✭ ✭ ✭

Hello Daniel C,

 

The "Below first page bid" estimate is just for 1 variation , the exact match variation (see this answer from google message 2)

 

https://www.en.adwords-community.com/t5/Tracking-Reporting/Est-First-page-bid-when-a-search-query-ex...

 

Now if your keywords are written without the matching operators [] "" or + then they are in simple broad match and they could match a large variety of search terms not just when people search for those words, in that exact order. So for many variations your keywords could show, except for the exact variation, for a lower bid.

 

What match types do you use for those keywords ?

Re: CPC and First Page Bid Estimate

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭
already checked them when i did my keyword research, the average cpc is between $0.05 and $0.10 for my 20 keywords

Re: CPC and First Page Bid Estimate

Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭
I've tried using all matches, exact and phrase but still nothing, i get the same high ($1.5) first page bid even tho there are no competitors

Re: CPC and First Page Bid Estimate

Top Contributor
# 9
Top Contributor

@Daniel;

  • What is the average monthly searches? 
  • Since you are in a niche business, expand the geographic region for average CPC reporting to include the whole country;
  • When hover on speech bubble - does it say that the ad is shown? - It could be that we are looking for the wrong reason?
  • When using the ad preview tool? What results are you getting?
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: CPC and First Page Bid Estimate

Visitor ✭ ✭ ✭
# 10
Visitor ✭ ✭ ✭
- Average monthly searches are close to 10.000 for the whole 20 keyword group
- I am already targeting the whole country, US
- Speech bubble says: Showing ads right now? NO > Your keyword isn't triggering ads to appear on Google right now due to a low Ad Rank. Ads are ranked based on your bid and Quality Score - quality score is between 8 and 10 for my keywords
- Ad preview tool shows no ads for 15 of my keywords and for the other 5, it shows 1 or 2 ads only, so there's still enough room on the first page to display my ads as well.

I still think that google wants to get more money from us and that's why my ads aren't showing.

And thanks for all the help to everyone who posted here, i really appreciate it!