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Below first page bid, but no other ads showing

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Its been asked many times, but I just want to point out to Google, that I am not paying more money on an ad that no one else uses. I have ads running for phrases no one else has, yet google says "Below first page bid". I was bidding 20p, Google suggests 50p. I am not paying that, so Google loses out because its not showing my ad at 20p. 

 

Its not a money making ad for me, so the amount Google want for is it ridiculous. If other people were bidding I understand, but no one is. 

 

So google actually loses out because I would not pay anything now. 

4 Expert replyverified_user

Re: Below first page bid, but no other ads showing

Top Contributor Alumni
# 2
Top Contributor Alumni

Good morning.

 

The First Page Bid Estimate is just that--an estimate of what the software thinks it would cost to have your ad eligible to compete for first page placement most of the time. Not bidding at that level doesn't mean that your ad will never compete for first page placement, just that it might do so only rarely.

 

For any search term where there is intent to take action (be it a purchase, an inquiry, a sign-up, or whatever), there are likely to be thousands of advertisers using that search term.  Their ads may be targeted to only certain geographic areas or only be active at certain hours of the day, which would explain why you perceive there is no competition.

 

A keyword that has no competition is probably not one that is used with "intent."  These can often be tagged as "low search volume" which means that they may not even be in the advertising database--they may not be eligible to serve ads at all.

 

There are some searches that Google simply does not serve ad traffic on. Bid estimates (which are triggered automatically by the system) are irrelevant in these cases.

 

Hope that helps to clarify the situation!

 

 

 

 

 

 


Theresa
Google AdWords Top Contributor
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Re: Below first page bid, but no other ads showing

Top Contributor
# 3
Top Contributor

Hi Laurence, further to Theresa's reply, I would also say that it is a common misunderstanding to think that CPCs should be very low when there appears to be no other advertising.  Google wants to show relevant Ads that provide a positive customer experience and that sometimes means that the CPC for a particular Keyword is higher than you might anticipate because historical data suggests that either relevancy is an issue or customers are generally dissatisfied when clicking Ads shown for that term.  In fact, I'd go as far as to say that if there truly is no other advertising for a term (given Theresa's comments on why you may not see Ads, even if they do exist) it's usually an indicator that other advertisers have tried that term in the past and found it unprofitable and these terms are more, not less, likely to have higher CPCs.

 

I would add that what you're prepared to pay per click should primarily be driven by your expected Return on Investment and that is decided by your conversion rate and conversion value.  For example, assuming a conversion rate of 5% you'll get a conversion every 20 clicks on average.  If your net profit is $500 per conversion, you can afford to pay up to $25 a click and still be in profit.  If your conversion rate is the same, but your net profit is only $100 per conversion, you can only afford $5 a click and so on.

 

So, if you haven't already done so, work out what your net profit per conversion is and then estimate a conversion rate (this can be very difficult and may require testing/experimentation) to reach a maximum CPC based upon the equation:

 

Max. CPC = conversion rate * profit per conversion.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Below first page bid, but no other ads showing

Top Contributor
# 4
Top Contributor
Just a short comment to add to what Theresa and Jon already told you, Laurence: "This estimate is based on the Quality Score and current advertiser competition for that keyword."

Even if there is no competition for a keyword, if the quality score is not high enough, Google will ask for a high price in order to show the ad.

Can you tell us what your quality score is for one of the keywords in question?
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: Below first page bid, but no other ads showing

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
Here's an example... I want an ad to appear at the top to link my website when someone searches for my name, "Laurence Cope". So I make an ad for Laurence Cope. No one else is. But Google wont show it, and also states the cost is too low. Google is stating 50p is the minimum.

I am not making money on this ad, it is just a way for me to be found easier for people searching my name, and I am happy to pay a small fee for it, but not 50p. So the ad is not showing, Google makes no money, I am not so easy to find.

So it does not make sense why Google would not want the money AND not show my ad. Its a lose lose situation. Showing my ad is a win win.

Re: Below first page bid, but no other ads showing

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
I agree with you Laurence. Also encounter the same thing, where no ad on first page, but google say bid is too low for first page.

Re: Below first page bid, but no other ads showing

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭
I also agree. I have relevant ad words, no one else is advertising. It's obvious that Google just wants to drive up the price. The whole conversion question is beside the point. Just because I make a good return if someone uses my product does not justify Google charging more if there are no other ads on that page. I have a bed and breakfast on a bike trail. I use the bike trail as a key word, there are no other advertisers, ever, when those key words are used, but Google says I'm not paying enough.

Re: Below first page bid, but no other ads showing

[ Edited ]
Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭

yes but whats more of an issue to me is I am not even making a return on the Ad I want to show. No income at all. I am happy to pay a small fee for something that doesnt make me money, but I am not paying a higher fee. If you make money from it you can justify paying a higher fee, regardless of other advertisers, but not if you make no income from it.

Re: Below first page bid, but no other ads showing

Top Contributor Alumni
# 9
Top Contributor Alumni

Wes C - Kywords with little or no performance history in AdWords don't normally have enough data for the system to produce accurate estimates. That does not, however, change the fact that there is a cost associated with including the keyword in the advertising database, adding it to the mix of elements that are weighed during the ad selection and auction period, etc. In short, there is a cost to serving an ad. 

 

I don't intend to debate the overall business model.

 

Laurence C - If you are not making a profit, then that simply suggests that you have work to do. You have not hit upon the "actionable" kewords, the ad messaging is not resonating with searchers, the landing page or pages are not "selling" the product/service when visitors arrive, or something else. 

 

A successful advertising initiative is a complex balance of elements.


Theresa
Google AdWords Top Contributor
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Re: Below first page bid, but no other ads showing

Visitor ✭ ✭ ✭
# 10
Visitor ✭ ✭ ✭
Theresa, site I want to drive traffic to is not meant to make money. I just want people to find it for specific keywords. No one else uses the keywords for advertising. So we should not have to pay a high amount for such advertising.