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geographical targeting

F A
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# 1
F A
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Why is it more costly to advertise in Canada than US?!?

 

I had a campaign that targeted ppl living in US and Canada. 

 

Now, over time I started to think it would be better to separate the 2 targeted areas into 2 different campaigns. Thinking being that Canada with its lower population will have a lower CPC for the keyword.

 

To my surprise, a couple of days after doing this, I noticed that my Canadian campaign costs 2.8 times higher than my US campaign for the same keyword in terms of  avg. CPC... Is there a reasonable explanation why it would cost almost 3X to advertise in a country with 1/10 of the population of US? The keyword in question was not something that is more popular in Canada than US. It is very general. Think "red widget" for example

 

Thanks

2 Expert replyverified_user

Re: geographical targeting

Top Contributor
# 2
Top Contributor
Hi FA,

What is the average position of your ad in US and Canada?

Is the ad position high in Canada? That can be a reason for high CPC.

Population in a geographic area is not a factor in Actual cost per click calculation. Actual cost per click depends on your Max CPC (bid), quality score and competition in that area.

There can be few reasons why the average CPC is high in Canada


1. You created the Canada campaign as new (Your old campaign remained the same, only targeting US now). As the Canada campaign is new, without performance/quality score history, your ad rank is low, so you avarage CPC is high.

2. While creating the new campaign for Canada you kept your bid same (as in the US campaign). Now your ads are showing high in ad results, and getting clicks at a higher CPC.

3. The competition for the keyword is high in Canada

My 2 cents

Deepak

Re: geographical targeting

Top Contributor
# 3
Top Contributor
I would say that the main cause would be competition on a given keywords.
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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