AdWords is now Google Ads. Our new name reflects the full range of advertising options we offer across Search, Display, YouTube, and more. Learn more

Ads
1.4K members online now
1.4K members online now
Get started with Google Ads - learn the basics to get set up for success
Guide Me
star_border
Reply

Keyword Planner Suggesting Bids Way Under Actual Cost

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Why is my Keyword Planner suggesting bids way under what those keywords actually cost once uploaded to the UI?  I have been on the hunt for cheap keywords to simply drive awareness of a service-related website.  The service offering is very broad, so many keyword themes apply.  When performing my keyword research, the planner is recommending several themes with keyword bids of under $1 which is what I need, but when I upload those keywords into the UI, the minimum first-page bid is several dollars....huh?  This is becoming a frustrating waste of time.  Does anyone have insights into why this is happening and/or advice for a better approach?  I'm looking for search-related approaches only.  Thank you!

2 Expert replyverified_user
2 ACCEPTED SOLUTIONS

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Top Contributor
# 4
Top Contributor

 

@Austin R@Austin R

This is the nature of statistics... Sometimes the margin of error is just too broad and  the value falls within this range (either on the "high range" or on the "low range")

It is not clear, though whether you are using "estimated" (traffic forecasts)  or the historical data ("search volume statistics)?

The bids  "historical data " is a better 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’

View solution in original post

Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Top Contributor
# 10
Top Contributor

@Ashish D;

Not quite;

When a new keyword is added,  until gains enough statistically significant data,  this KW is assigned a  "default QS",  which is (based on) "an  average" QS for the exact match QS (for this KW), as calculated for other advertisers,

This was a long sentence... Hopefully clear;

 Google says:

>>" when we add fresh keywords, initially, they’re awarded a historical Quality Score based on their previous performance on Google.com. And only once the keyword starts accruing statistics, the system then evaluates its Quality Score based on its recent performance. This doesn’t happen dynamically but is a gradual process".

 

https://www.en.adwords-community.com/t5/Basics-for-New-Advertisers/Ingredients-of-the-Quality-Score-...

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’

View solution in original post

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Badged Google Partner
# 2
Badged Google Partner

Hello Austin R,

It depends on quality score. The higher the quality score is, the less you will pay. I have the exact opposite problem. I usually see a much higher bids in keywords planner and once I will use these keywords for a while, the cpc goes down a lot. Basically if you have keywords with score quallity 6/10 you are still paying more than is minimum required bid. Anything above this 7/10,8/10,9/10,10/10 you need a lot lesser CPC bids. So if you want to decrease CPC cost of your keywords, try to improve any component of quality score mentioned here:

 

https://support.google.com/adwords/answer/2454010?hl=en

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Rising Star
# 3
Rising Star
Hi Austin R,

Minimum first-page bid column often gives misleading information. Auction is always different so even with "below first page bid" you would be able to get impressions and clicks.
So find as much relevant keywords as you can and limit cost per click for all of them so you will always pay the desired price.

Cheers,
Alexey
Cheers, Alexey
UAWC Agency
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 Mini-CM (Community Manager)
September 2015

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Top Contributor
# 4
Top Contributor

 

@Austin R@Austin R

This is the nature of statistics... Sometimes the margin of error is just too broad and  the value falls within this range (either on the "high range" or on the "low range")

It is not clear, though whether you are using "estimated" (traffic forecasts)  or the historical data ("search volume statistics)?

The bids  "historical data " is a better 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: Keyword Planner Suggesting Bids Way Under Actual Cost

[ Edited ]
Explorer ✭ ✭ ✭
# 5
Explorer ✭ ✭ ✭

Hi Austin,

The difference could be because
- you searched for e.g. Broad match keywords in Keyword Planner and used Exact or Phrase match type keywords in your adwords account.
- you searched the keywords for a location which is different from the location that you are targeting in adwords account
- you searched for keywords in keyword planner for Google Search only and in Adwords you are targeting both Google Search and Search Partners
- and the bid that Google Keyword Planner is suggesting is actually an Average Bid taken based on the past 12 months data or the date range that you selected and that too of all the advertisers bidding on those keywords. So, the actual bid will vary from user to user.
- and being a new account, initially everyone is expected to pay higher and during to course of time, depending on certain other factors like Max CPC, Quality Score, CTR, Relevancy etc. your bid will change.

Hope this helps!

Regards,

Ashish

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Rising Star
# 6
Rising Star
Hi Ashish, can you please send me a link where it's written that new
accounts are paying more for click. Didn't heart about this point before.
Thanks.
Cheers, Alexey
UAWC Agency
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer.’

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Explorer ✭ ✭ ✭
# 7
Explorer ✭ ✭ ✭
Hi Alexey,

The reason why I am saying this is being a new account, it takes some time before the history is build up which is very important for any account in order to compete on top positions and still have lower CPCs and I have experienced this myself almost every time with new accounts. Google will never give me higher position and lower cpc as soon as I have started my account (in most of the cases). Had this been the case then there is no point of having the historical data, high CTR, High Quality Score for other advertisers. It would then simply be a bid war, the higher you pay the higher position you get. But that too doesn't guarantee your acg. CPC will be lower. The avg. cpc. starts to come down after your keyword/ad have some data and that too with good CTR, good QS of your keyword, which position you are targeting, the competition on those keywords and many other factors. In short, your Ad Rank plays a vital role in deciding the avg. cpc you would be paying.

Hope this helps. Do let me know if you still have more queries, I will try to answer those.

Regards,
Ashish

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Top Contributor
# 8
Top Contributor

@Alexey C;

Once you add a new keyword, you are assigned a default QS based on other advertisers QS for the same keyword (in its exact match form). After about 1000 impressions or some time (which Google does not disclose, your KW performance "kicks in" (predominately the CTR)

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: Keyword Planner Suggesting Bids Way Under Actual Cost

Explorer ✭ ✭ ✭
# 9
Explorer ✭ ✭ ✭
@MosheTLV - Agreed with your point.

Just wanted to share my experience - what I have noticed is when you add a new keyword in the ad group and when someone searches for that keyword your ad starts to show in the auction. As soon as your ad comes in auction Google calculates the Quality Score based on the Relevancy of your Ad text, landing page and other factors. This means, your Quality Score may fluctuate some times during the day. Rest it will depend on the CTR, the higher it is, the higher are the chances of lower cpc (but not guaranteed).

Regards,
Ashish
Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Keyword Planner Suggesting Bids Way Under Actual Cost

Top Contributor
# 10
Top Contributor

@Ashish D;

Not quite;

When a new keyword is added,  until gains enough statistically significant data,  this KW is assigned a  "default QS",  which is (based on) "an  average" QS for the exact match QS (for this KW), as calculated for other advertisers,

This was a long sentence... Hopefully clear;

 Google says:

>>" when we add fresh keywords, initially, they’re awarded a historical Quality Score based on their previous performance on Google.com. And only once the keyword starts accruing statistics, the system then evaluates its Quality Score based on its recent performance. This doesn’t happen dynamically but is a gradual process".

 

https://www.en.adwords-community.com/t5/Basics-for-New-Advertisers/Ingredients-of-the-Quality-Score-...

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’