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Google AdWords- Low Bid vs High Bid in CPC.

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi

 

I am a bit confused why Google asks you to raise your CPC bid in order to improve your adRank even though the final outcome is based on the number of clicks and conversions obtained.

- I created two accounts for adWords.

- Created exactly same campaign with same keywords in both the account, Chigh & Clow respectively.

- In one account I used a CPC of just 2.5 & in the second account I used a CPC of 15.0 with a same daily budget of 300 each.

 

Analysis after a week:

 

The Clow surprisingly performed better with more clicks and more conversions where as in Chigh although ad was on top most of the times but got very few clicks compared to Clow.

So what I mean to say is even though my ads don't appear very frequently in Clow but they appear sufficient number of times to get me more clicks & conversions, & consuming my daily budget as well.

 

So I think using high bid on a campaign merely gets more appearance and depletes frequently where as low bid campaigns appear throughout the day occasionally. Since users on Google are so many that even your low bid ad performs. 

 

Can anybody advise me if I am doing anything wrong or is this a correct analysis?

 

1 Expert replyverified_user
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Marked as Best Answer.
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Accepted by topic author Datanet India P
October 2016

Google AdWords- Low Bid vs High Bid in CPC.

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆

Hi @Datanet India P,

 

the most important thing that matters in your campaigns is conversions. if you are getting more conversions on clow stick to it. 

 

regards,

Zaby

 

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Re: Google AdWords- Low Bid vs High Bid in CPC.

Top Contributor
# 2
Top Contributor

Hi @Datanet India P firstly I should point out that if you ran these two Accounts using the same targets you were probably breaching AdWords Policies, and I'd advise you stop one of them immediately.


As far as your question goes, we'd really need more data to make a proper assessment, but it's likely the difference is primarily down to Ad position.  If you were seeing Average CPCs close to the maximums you set, then obviously you can get more clicks for 2.5 than you can for 15 out of the same budget.  Since you're getting more clicks, but your conversion rate is probably roughly the same, then it also makes sense that you might see more conversions.  For example, let's say you have a budget of $100 per day, and have one Keyword with a CPC of $2 and one with a CPC of $10.  You can therefore get a maximum of 50 clicks for the first Keyword and only 10 for the second.  If your conversion rate is 10% (which is quite high, but simple math) then you might expect to get 5 conversions for the first Keyword but only 1 for the second.

 

This is one reason why it's rarely a good idea to chase the very top position in Ad rank.  The difference in CPCs is not normally this extreme, but there is usually a "sweet spot" where you'll get more clicks per day because of lower CPCs, but not lose much visibility.

 

As an aside, AdWords ranking takes no notice of conversion data at all in Ad Rank.

 

Jon

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

Google AdWords- Low Bid vs High Bid in CPC.

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Hi Jon

 

Thanks for replying and I have deleted the second account already but I didn't know if I was violating any policy.

 

I think it also depends on the overall budget. If yo have a higher budget then it's better to use high CPC bids and focus on the Ad Rank. 

 

 

Best

Younus

Marked as Best Answer.
Solution
Accepted by topic author Datanet India P
October 2016

Google AdWords- Low Bid vs High Bid in CPC.

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆

Hi @Datanet India P,

 

the most important thing that matters in your campaigns is conversions. if you are getting more conversions on clow stick to it. 

 

regards,

Zaby