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Over the top charges

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I sell an email quiz priced at £4 how can Adwords ask me to pay over £1 per click - Madness

1 Expert replyverified_user

Re: Over the top charges

Participant ✭ ☆ ☆
# 2
Participant ✭ ☆ ☆
Philip,

The price depends on many factors, which may or may not be suited to your business ROI. £1 for you may be madness but a cash cow for another.

Perhaps you could experiment with the match types, lower average page position slightly, focus more on device traffic?

It may also be useful to look at different sets of keywords and the use of negative keywords. On top of this, if you held a 100% conversion the £4 to £1 seems attractive to me.

My suggestions are general but hope they may help a little.

@KimClink Provides some useful guidance here also, "AWords may not make sense for everyone but it makes sense for plenty of advertisers. There are ways of lowering your cost per click through improving quality scores and modifying position so that you are lower but not invisible. There are also alternatives to just the search network like the display network"

You may also consider Remarketing may also be a way to capitalize on people who have already visited the site through any source (direct, organic, ppc, etc)


Hope that helps

James Edward

Re: Over the top charges

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
100% conversion the £4 to £1 would be fantastic, alas that would never ever happen in the real world, its more like 60 clicks to one sale

Re: Over the top charges

Participant ✭ ☆ ☆
# 4
Participant ✭ ☆ ☆
Hi Philip

Honestly, don't give up. I have seen some fantastic conversions rates under the optimal conditions. The right traffic, ad, CTAction, price, landing page and conversion tactics all need to be heavily tested,refined and optimised. I am sure with the right time spent testing and changing a few things, you can make this work.

1 in 60 clicks is the current benchmark, so if we could work on getting this down to 1 in 10, and work on QS and optimal pricing improvements, there is hope.

Worth a thought, this time of year you may be experiencing extra competitiveness where the top 3 positions Ad rank is extremely high. Post Christmas, 26 onward you may see a significant drop (as some sectors do so quite a lot from experience).

Dot forget to also assess the true lifetime value of a customer, and also the role of assisted conversions. I.e. a visitor may come via that kw, then return later via bookmark or organic search and convert. Attribution Modelling on a last click can sometimes be a little limited (assuming here you are using last click).

Hope my thoughts help anyhow. I have seen cases like this and they can work. Not for everyone, but try everything first.

James Edward

Re: Over the top charges

Top Contributor
# 5
Top Contributor
I'm not saying that you should give up AT ALL. But, not all businesses are suited for Adwords. I walk through the estimates with my clients. At a 2% conversion rate, your cost per sale would be £50 -- Clearly that would not be profitable for you. Even at a 10% conversion rate, you have a £10 CPA.

You will have to greatly focus on lowering your cost per click as well as maximizing your conversion rate. Or bundling your services? Is there anything that you can add-on to increase the average order size? Is there a life time value of a customer to consider?

Re: Over the top charges

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
I think unless adwords takes a look at the charges for the cheaper products people want to advertise, I can't see it working for me