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How much are words costing?

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# 1
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For instance, how much would the word PLASTICS cost?

1 Expert replyverified_user
Marked as Best Answer.
Accepted by topic author Laura S
September 2015

Re: How much are words costing?

Top Contributor
# 2
Top Contributor
How can such a short question be such a complex one? ;-)

Let's break this down a little.... (and bear in mind that I'm simplifying things... I mention this, not for you, but for others who will pick me up on points that are more complex than I present them!)

At its core AdWords is auction based - so you and I are both bidding for the word plastics.

You bid $1 I bid $0.75 - you win - so your ad appears above mine - and, for the record, you pay $0.76 - enough top beat me.

However, there is another really important factor at play - Quality Score.

QS is based upon a number of things - including but not limited to - the historical click through rate of the word in your account, the ad copy relevance, the landing page relevance and a bunch of other things - it will be worth you studying up a little on QS.

QS ranges from 1/10 to 10/10....

The more relevant (and this is the key - relevance as judged by Google) your keyword is to what the searcher is searching for the higher your QS.

Now let's assume that my QS is 8/10 and yours is 5/10....

now the bids look different because your bid is "worth" $1 x 5 - so $5 and mine is worth $0.75 x 8 so $6

Again - as an aside - there is a little math to do here - but to beat your $5 I only need to pay $5.01, which in my terms with my QS is $0.62 in real money!

There are lots of other factors... how much competition is there? How much is everyone else bidding? What time of day is it? (Many advertisiers schedule their ads) How tight is your geo target? etc. etc.

All of these elements (and many more) contribute to how much the click is going to cost....

And, the only way to know for sure, is to start running the ads.

I hope that hasn't confused things more than they already were.....