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Estimated Average CPC and Avg cpc

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Probably an absurd nubie question, but what's the difference between Estimated Average CPC and Avg cpc?

 
Both of these figures are on the new Keyword Planner "download plan" csv, but there's no explanation anywhere (that I can find) to explain the reason for the wildly different figures between the two...


Avg. CPC Estimated Average CPC
£0.96 £0.55
£0.66 £0.65
£0.74 £0.60
£1.01 £0.65
£1.11 £0.79
£0.79 £0.63
£1.31 £0.70
£0.80 £0.66
£1.01 £0.59
£0.57 £0.76
£0.69 £0.47
£0.69 £0.54
£2.45 £0.57
£2.70 £0.63
£1.48 £0.67
£1.46 £0.74
£0.49 £0.73
£1.00 £0.61
£0.79 £0.68
£1.47 £0.72

 
1 ACCEPTED SOLUTION

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Marked as Best Answer.
Solution
Accepted by topic author James J
September 2015

Re: Estimated Average CPC and Avg cpc

Explorer ✭ ☆ ☆
# 2
Explorer ✭ ☆ ☆

Hi James J,

 

Lets start from the definitions :

 

  • Avg. Cost-per-Click (CPC): The average amount that you pay each time someone clicks your ad extension. Average CPC is determined by totalling the cost of all clicks and dividing it by the number of clicks received.
  • Estimated Average CPC : is what the word says Estimates.

You can find more about Google Estimations in this article :

 

https://support.google.com/adwords/answer/3022575?ctx=tltp

 

But here we have an exception from the definitions mentioned above

 

The data you see in the Avg CPC column is not from your account its from historical statistics.

-----------------------------------------------------------------------------------------------------

Historical statistics
Include average monthly searches, competition, and other statistics
-----------------------------------------------------------------------------------------------------
If you select the Historical Statistics it gives you the Avg CPC column. If not choosing this option it gives you only the Estimates upon your query parameters.
The Avg CPC comes from historic data ad words has for this keyword but bear in mind that these are calculated from all the accounts so that it will help you realize the competition.
 
So the widely difference figures has to do with :
 
The  Estimated Average CPC comes from your query in the keyword planner 
The Avg. CPC comes from Googles Historic Data.
George Gemenetzis
Don't forget to Star or credit an answer as an AdWords Accepted Solution if it helped you.

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author James J
September 2015

Re: Estimated Average CPC and Avg cpc

Explorer ✭ ☆ ☆
# 2
Explorer ✭ ☆ ☆

Hi James J,

 

Lets start from the definitions :

 

  • Avg. Cost-per-Click (CPC): The average amount that you pay each time someone clicks your ad extension. Average CPC is determined by totalling the cost of all clicks and dividing it by the number of clicks received.
  • Estimated Average CPC : is what the word says Estimates.

You can find more about Google Estimations in this article :

 

https://support.google.com/adwords/answer/3022575?ctx=tltp

 

But here we have an exception from the definitions mentioned above

 

The data you see in the Avg CPC column is not from your account its from historical statistics.

-----------------------------------------------------------------------------------------------------

Historical statistics
Include average monthly searches, competition, and other statistics
-----------------------------------------------------------------------------------------------------
If you select the Historical Statistics it gives you the Avg CPC column. If not choosing this option it gives you only the Estimates upon your query parameters.
The Avg CPC comes from historic data ad words has for this keyword but bear in mind that these are calculated from all the accounts so that it will help you realize the competition.
 
So the widely difference figures has to do with :
 
The  Estimated Average CPC comes from your query in the keyword planner 
The Avg. CPC comes from Googles Historic Data.
George Gemenetzis
Don't forget to Star or credit an answer as an AdWords Accepted Solution if it helped you.

Re: Estimated Average CPC and Avg cpc

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
George,
Thank you for the reply. I honestly don't mean this to sound like I'm having a go (as there must be some numpties on here who don't get it), but I do get that 'estimate' has a different meaning to 'average'.
What I don't get is how Google's estimates (guesses) can be so wildly different from the average (historical data)?
Also, it would be very helpful (and it'd shut me up) if Google put the very useful/informative link you provided (or at least some/any info) on their keyword planner page.

Re: Estimated Average CPC and Avg cpc

Explorer ✭ ☆ ☆
# 4
Explorer ✭ ☆ ☆
Smiley Happy

I am sure that you got it anyways (the word estimates ! i had to mention it though)

I ran some queries with some keywords and i saw that my results where the opposite from yours , meaning that in my account the queries resulted lower prices in Avg CPC than the Estimate Avg CPC column in all cases. Quite the opposite from you !

I suppose that the parameters you set when using the keyword planner produce different estimates each time depending on them.

An interesting experiment from your side would be to check the results with different CPC and daily budget than the ones you mentioned above and of course double check then the Avg CPC if it stays the same or changes too.
George Gemenetzis
Don't forget to Star or credit an answer as an AdWords Accepted Solution if it helped you.

Re: Estimated Average CPC and Avg cpc

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
The joys/mysteries of Google! :0)
Thanks for your help

Re: Estimated Average CPC and Avg cpc

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

Thanks for your input. Even I was wondering the difference. 

 

If I understood correctly, it;s better to consider the Avg CPC than to Estimated Avg CPC.

 

Regards

Ranjan Jena

www.ppcworkshopindia.in

Re: Estimated Average CPC and Avg cpc

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭
Thanks George. Clears up some of my confusions.

Estimated Average CPC and Avg cpc

Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭

Thanks Gege. Clear Answer