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Expected CPC pricing for low volume keywords with no ad competition

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi all.  I'm new to AdWords and trying to setup my first ad campaign.  I'm managing a non-profit web site with a very specialized target market.  Like maybe a total of 10,000 searches for my 3 main keywords per day.  There isn't anyone else doing paid Ads for these keywords, they are just relying on organic.  I'm also working on getting my organic results to show in the first page (but that's a separate issue).

 

I have setup my Ad and my Campaign successfully, and since it's a non-profit, a pretty low max cost per day.  I understand that the ad won't show up very often.  What I'm finding is that the CPC turns out to be $1 to $3 EACH.  My thought was that due to the low search volume and search demand, that my CPC would be in pennies per click, not dollars.

 

Any thoughts on: 1) is this the expected behavior? 2) if not, what might be wrong in what I've setup.

 

Thanks in advance.

Mark

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Accepted by topic author Mark D
June 2016

Re: Expected CPC pricing for low volume keywords with no ad competition

Follower ✭ ✭ ✭
# 2
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Hi Mark,

 

Fair enough what you have said. But we cant guarantee that no one is bidding on the keywords which you are using to push your ads. Since you have set up new account, just wait for some more data/numbers in your account and analyse the auction insight report. You may get some competitors who will be bidding on those keywords.

 

Secondary, While providing the expected cpc Google takes into consideration your neighbouring regions for what actually others are bidding or paying for single click. It's not mandatory that for your cpc to be in pennies when no competitor is visible.

 

Third, it is also possible that your rivals were running ads in specific hours and not across all the day.

 

Also, google calculates sets the standard cpc for keywords after considering the current cpc of keywords in other region or countries.

 

Best,

Pushpendra Singh

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Marked as Best Answer.
Solution
Accepted by topic author Mark D
June 2016

Re: Expected CPC pricing for low volume keywords with no ad competition

Follower ✭ ✭ ✭
# 2
Follower ✭ ✭ ✭

Hi Mark,

 

Fair enough what you have said. But we cant guarantee that no one is bidding on the keywords which you are using to push your ads. Since you have set up new account, just wait for some more data/numbers in your account and analyse the auction insight report. You may get some competitors who will be bidding on those keywords.

 

Secondary, While providing the expected cpc Google takes into consideration your neighbouring regions for what actually others are bidding or paying for single click. It's not mandatory that for your cpc to be in pennies when no competitor is visible.

 

Third, it is also possible that your rivals were running ads in specific hours and not across all the day.

 

Also, google calculates sets the standard cpc for keywords after considering the current cpc of keywords in other region or countries.

 

Best,

Pushpendra Singh

Re: Expected CPC pricing for low volume keywords with no ad competition

Rising Star
# 3
Rising Star
While there are still some keywords out there that cost pennies per click, most don't because Google has set minimum bids. We see this regularly with brand bids that nobody else is bidding on.

Google don't share their methodology, but the minimum bids seem to be an assessment of the value advertisers are most likely to receive. Keep in mind that Google knows the conversion rates and conversion values from millions of ads and keywords.

Also, other factors impacting your CPC include click-through-rate, keyword relevance and site quality. Check the Quality Score of your keywords - the lower the QS the greater the CPC savings will be if you improve your QS.

Re: Expected CPC pricing for low volume keywords with no ad competition

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭
Thanks for the info. I'm still have lots to learn. Smiley Happy

Re: Expected CPC pricing for low volume keywords with no ad competition

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
Thanks for the thoughts here.