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keyword tool displaying false results???

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# 1
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when is anaysled the estimation rate for keyword when im setting up the ad it shows a very less price

the next day when i login to the account,i was shocked since it displays the first page bid was below and give a first page rate which is 500 times greater than the estimation amount 

why is it so???

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Accepted by Theresa_Zook (Rising Star)
September 2015

Re: keyword tool displaying false results???

Top Contributor
# 2
Top Contributor

Hi Arun4565,

 

The Keyword Tool and any traffic/cost estimates are very rarely realized in an actual account.  There are many factors that are taken into account when referencing actual costs.  I cannot explain this any better than Lakatos did in this thread:

 

https://www.en.adwords-community.com/t5/Measure-results-use-Analytics/Keyword-Tool-CPC-does-not-matc...

 

Hope this helps!

 

-Tom

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
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 Theresa_Zook (Rising Star)
September 2015

Re: keyword tool displaying false results???

Top Contributor
# 2
Top Contributor

Hi Arun4565,

 

The Keyword Tool and any traffic/cost estimates are very rarely realized in an actual account.  There are many factors that are taken into account when referencing actual costs.  I cannot explain this any better than Lakatos did in this thread:

 

https://www.en.adwords-community.com/t5/Measure-results-use-Analytics/Keyword-Tool-CPC-does-not-matc...

 

Hope this helps!

 

-Tom

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

Re: keyword tool displaying false results???

[ Edited ]
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# 3
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It´s true the keyword tool is not very reliable.

But in it´s defense one has to say that the user should know the rules behind it. First and foremost that the figures given are all estimations and averages. What you see is not an estimation of what you must or should bid, but what a general user that enters auction will have to bid in general to gain a certain amount of impressions.

 

Also, if you let the tool use broad match for the keyword you enter, the numbers are probably based on a hugely differentiated tail of search queries, the competition for which also can vary enormously.

 

As an example, when I add the keyword chocolate, I get a cpc estimation of 5,37 (not USD! : ) but when I add the same keyword as exact match [chocolate] the estimated is 12.73.

Estimated CPC for [godiva chocolates] is 1.44, but for [chocolate gift baskets] it is 27.18

All those different search queries and CPC-estimation are aggregated in the estimation of the broad matched chocolate