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Understanding low competition, high CPC

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi there,

 

Hope someone can help me understand this. I have received the following result from a keyword research: 

 

"angina" | competition 0.03 | CPC ZAR 13.36

"osteoarthritis" | competition 0.37 | CPC ZAR 2.90

 

What I'd like to know is why a keyword such as  'angina' has such low competition but an unusually high CPC? Where as a the second keyword has mid competition but a much lower CPC. What could be a possible explanation for this? 

 

Thanks,

Georgia 

 

 

2 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Hi Georgia,   First of all, please bear in mind that CPC...

Top Contributor
# 3
Top Contributor

Hi Georgia,

 

First of all, please bear in mind that CPC is not derived from competition.  It is not true to think that a keyword with low competition will have a low CPC and that one with a higher competition will have a more costly CPC.  Google determines the CPC for a particular keyword by using a number of factors - some of which are related to the campaign/account of the user - but many of which actually relate to the performance of advertising for that keyword. "Performance" can mean several things here:  it may be that advertising this keyword is generally unproductive in terms of sales or other performance metrics such as CTR (click through rate). 

 

Consider also that just because there appears to be low competition now, this doesn't mean there has never been any competition.  A "low competition/high CPC" combination could be considered a warning that others have tried to use this keyword in the past, and found it hard (if not impossible) to return good results.

 

Jon

 

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

View solution in original post

Hi Georgia,   My understanding would be that if this keyw...

Top Contributor
# 2
Top Contributor

Hi Georgia,

 

My understanding would be that if this keyword has a very low competition that means very less advertisers would be bidding on it relative to all other keywords and the obvious reason could be high Avg. CPC bid as you mentioned. Because if advertisers would have been bidding for this keyword frequently, then Avg. CPC would have been little lower and competition would been little higher as you mentioned for the second keyword.

 

This is just my point of view and may be somebody else would have some different opinion to share with.

 

Pankaj

Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Hi Georgia,   First of all, please bear in mind that CPC...

Top Contributor
# 3
Top Contributor

Hi Georgia,

 

First of all, please bear in mind that CPC is not derived from competition.  It is not true to think that a keyword with low competition will have a low CPC and that one with a higher competition will have a more costly CPC.  Google determines the CPC for a particular keyword by using a number of factors - some of which are related to the campaign/account of the user - but many of which actually relate to the performance of advertising for that keyword. "Performance" can mean several things here:  it may be that advertising this keyword is generally unproductive in terms of sales or other performance metrics such as CTR (click through rate). 

 

Consider also that just because there appears to be low competition now, this doesn't mean there has never been any competition.  A "low competition/high CPC" combination could be considered a warning that others have tried to use this keyword in the past, and found it hard (if not impossible) to return good results.

 

Jon

 

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

Thank you for the reply, really helpful and much apprecia...

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Thank you for the reply, really helpful and much appreciated.  

 

Cheers,
Georgia  

I have been wondering the same thing. Seem that the two c...

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

I have been wondering the same thing. Seem that the two concepts, cancel eachother out. 

Re: Hi Georgia,   First of all, please bear in mind that CPC...

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
Thanks Jon.