AdWords
6.1K members online now
6.1K members online now
Find out more about AdWords billing options, forms of payment, and promotional codes
Guide Me
star_border
Reply

Why did I get charged $47.90 for one click

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Why did I get charged $47.90 for one click when in my campaign Google states that for this particular keyword the  Est first page bid is $3.00 and the Est top page bid is $3.75.  The difference between $47.90 and $3.75 is ridiculous and criminal!

2 Expert replyverified_user

Re: Why did I get charged $47.90 for one click

Visitor ✭ ✭ ✭
# 2
Visitor ✭ ✭ ✭
What was the keyword? What match type did you use?

Re: Why did I get charged $47.90 for one click

Follower ✭ ✭ ☆
# 3
Follower ✭ ✭ ☆
Hey Fred - Was your bid set to auto? That's the estimate, the actual cost could be different, has happened with me but not such a drastic difference.

Re: Why did I get charged $47.90 for one click

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

It should not matter whether it is a manual or auto bid, the point is that Google are already telling me what the first page bid for that keyword is going to be, between $3.00 and $3.60....bottom line, end of story.  If any other business did that, they would be taken to court by the authorities.  As far as an estimate is concerned, there is an industry standard and common sense, the accepted value is, if someone gives an estimate it is plus or minus 10% of that given value. Anything outside does not qualify as an estimate!!

What they charged me is 700% more than their estimate....no amount of sugar coated ear tickling is going to justify that.

There are a number of ways to describe what they did and I'll let you guy's chose a few.....Post away!!!

Re: Why did I get charged $47.90 for one click

Top Contributor
# 5
Top Contributor
Hi,

Is it possible to share a screenshot of what max bid you allocated to that particular keyword and what actually you have been charged?

Pankaj

Re: Why did I get charged $47.90 for one click

Top Contributor Alumni
# 6
Top Contributor Alumni

Firstly, sorry to hear you fell victim to these costs.

 

Secondly, just to play devil's advocate, I agree with your point but would like to give another point of view on it.

 

"It should not matter whether it is a manual or auto bid, the point is that Google are already telling me what the first page bid for that keyword is going to be, between $3.00 and $3.60....bottom line, end of story. "

 

The first page estimate could just mean that to get 9th position (which is the bottom right hand corner of page) you will likely pay in the region of $3.00 - 3.60... however if you want to be higher up the page (depending on your bidding options) then for position 1 or 2 on competitive terms you could easily have to spend significantly more, although $47 is a bit mental.

 

Again, just playing devil's advocate, but with hindsight I don't think you would really believe that there would have been a $0.60 difference between the bottom and the top of the page, even at just an estimate? I suspect not, but you just wanted to trust Google's estimate. I have always thought that the top of page estimate was flaky at best and in my experience of measuring stats vs. estimates, it almost never matches up. 

 

I agree with you on the common sense thing RE the estimate, but I'm afraid you need to fully understand AdWords before you dive in to it and have full control over the settings, otherwise it's all to easy for things like this to happen.

 

I truly am not being patronising here and it's appalling that Google gives estimates that are so wildly out of proportion with reality. I've always taken traffic estimates from Google with a pinch of salt, because how can Google truly predict what your cost is going to be? When the adrank algorithm is so heavily dependent on what your individual account performance metrics are (mainly CTR & as such QS), Google can do no more than give estimates based on historical data of other advertisers, who have completely different sites and ads to you.

 

One extreme theory could be that your ads and keywords have really low QS, thereby meaning that Google automatically increased your max CPC a crazy amount in order to get you top of page.

 

It would be good to see more details from you. Again - totally feel for you and am not being patronising, but it pains me to see the amount of people who take Google's estimates as gospel and then get stung by the reality. It's not fair.

Jack Porter-Smith
Jack's G+

Re: Why did I get charged $47.90 for one click

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭
In principal it does not matter what my bid was. As I keep
repeating...Google has already told me what the first page bid for that key
word is. I do not want to use terms that will insult your intelligence,
but this is an easy concept to grasp, is it not?

EG if you call a plumber to your home for an emergency and he gives you an
estimate for the repair of $150 dollars and then you say to the plumber "
Oh this is such an emergency I would have been prepared to pay $1050 " , so
when the plumber finished the job he then charges you $1050. Come on
surely this is so stupid and corrupt it really does not even deserve the
time to have to give you this explanation.

In Australia that plumber would be very heavily fined by our ACCC, the
Australian consumer watch dog.

Re: Why did I get charged $47.90 for one click

Top Contributor Alumni
# 8
Top Contributor Alumni

No worries about insulting me, I'm thick skinned.

 

To go with your analogy then... say you called the plumber and he gave you a $150 estimate. When he arrives though, he realises that the problem is much worse that was conveyed in the initial information you provided him  and tells you that in actuality it will cost $1050.

 

In that scenario you would of course had the option to control whether or not you paid the extra sum, by agreeing to the plumber's revised estimate or kicking him out of your house. 

 

Conveying this to the Google example... The initial info you gave Google in the KW tool is the same as the information you gave the plumber over the phone prior to him visiting you. So they set a price of $3-3.60 in principle. BUT the big caveat here is that those estimates are based on historical data of other advertisers and prices will vary based on your own account specifics. So maybe Google then saw what keywords you had in your account, saw the ads and the site, and coupled with your bid settings decided that the situation was MUCH worse than you described it in the estimator tool and it's actually going to cost $47 for a click, not $3.60.  So far this scenario is exactly the same as the plumber one.

 

So by this stage Google have automatically determined that the price is going to be much more than the estimate was (just at the Plumber did), but it just went ahead and spent the higher level of money because you had no control over it. The missing step was asking you if it's okay to spend that much more money before going ahead, like a Plumber would. In effect, this step would have been your bidding settings - so I know you keep saying that your bid is irrelevant, but it isn't. I'm not a Google evangelist, and I do agree that the discrepancy is ridiculous, but at the same time it is easily avoided and you really shouldn't take any estimate of any sort as gospel.

 

I go back to stressing the point that you have to know what you're doing with AdWords or you will get burnt, and I don't like to see that happen!

 

 

Jack Porter-Smith
Jack's G+

Re: Why did I get charged $47.90 for one click

Top Contributor
# 9
Top Contributor

Hi Fred, there's a couple of things to say here.


Firstly, and most importantly, the first page bid figure is an estimate, which I know you see.  It is not an absolute.  To use your own analogy of the plumber, in his experience the sort of job you've called him for tends to cost $150, so that's what he quotes you.  When he arrives and starts work he finds a number of problems and realises that the job is not as straightforward.  By the time he finishes the actual cost is closer to $1000.

 

Of course, in this situation you'd expect the plumber to talk to you during the process and ask for permission to continue.  But this is effectively what you've done by using automatic bidding and allowing a Max CPC as high as that.  You have in effect said to AdWords/the plumber that you're prepared to pay whatever it takes to achieve that click/that fixed boiler.

 

Although I hate to say it, if this behaviour is not what you expected then it is evidence only of a misunderstanding on your part of exactly how AdWords works.  This is not a new feature, it is not "broken" in any way.  If you wanted to pay no more than a certain amount then that option was always available to you within the AdWords settings, it's called "Max. CPC."

 

How did an estimate of $3.60 become $47?  As Jack has already said, "first page" means only that and $3.60 may be only enough to get you at the very last Ad on that page.  However, more important this figure is an estimate based across time periods, all advertisers and multiple regions.  I'm sure there will be times when you could pay $3.60 and be on the first page but clearly the time of this click wasn't one of them.

 

Actual CPC can vary with time of day, day of the week, seasons, even the weather.  Competition is another factor that can cause wide variations in CPC:  I have one client where it is very easy to see when one of their competitors starts and stops advertising because of the impact this has on their CPC.

 

I appreciate your anger and frustration, and you have had the misfortune to receive a particularly vicious manifestation of this effect ($47 is a lot for any click!) but it is normal to AdWords settings.

 

Jon

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

Re: Why did I get charged $47.90 for one click

Visitor ✭ ✭ ✭
# 10
Visitor ✭ ✭ ✭

Ahh Google does know all about my campaign and all the history.  The campaign has been running for over 12 mths and that very same keyword has also been running for over 12 mths.  Unless Google can actually show me that someone else was prepared to pay around $47 for that same keyword at the same time, then Google has stolen from me.   And Ohh blah blah and all the fancy algorithmic twin fox tail explanation about quality score effecting the bid to this degree is a load of bull **bleep**, to put it bluntly.  As I said I have been running this campaign for over 12 mths and I see my bid cost and page position for my keywords.

This particular bid on the keyword was simply an experiment just to see how corrupt the system is ( and for the sake of legalities, thats my opinion ) and yeah yeah yeah they certainly did take advantage of it.  You poor b-stard Bernie Maydoff languishing in a prison cell thinking if only I had a search engine I could have done it all over and be one of the untouchables.
Hey Jon this is only the tip of the ice burg,  I can show you where Google is charging me for 4 times the amount of clicks that are actually getting to my landing page. So to make this clear, I am paying Google for 40 clicks of which 10 are getting to my landing page.  Yipee out of those 10,  I have to make a conversion.  Not much chance of any roi on that is there .  Most are struggling to make anything when we have all the clicks to work with.
 
Just to clear up the "insult your intelligence statement" it was made as a general statement, and not directed at any individual.  If you took it as personal please accept my apology.