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Fluctuating Keyword Costs?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hey, I am setting up our Google AdWords Grant account and choosing keywords. I have noticed that some words seem to come in under the $2 max bid, then later are disqualified. Why is this? Do the Keywords costs fluctuate? Should I leave these words in hopes they will be accepted again later?

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Re: Fluctuating Keyword Costs?

Follower ✭ ✭ ✭
# 2
Follower ✭ ✭ ✭

Hi Amy,

 

Welcome to the community!

 

Since some people set thier ads to run at a certain time, this creates "Peak Times" where there is more competition for a keyword at certain points during the day. Thus, increasing the price needed to show your ad.

 

Hope this helps! let me know

 

Andrew

 

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Re: Fluctuating Keyword Costs?

Top Contributor
# 3
Top Contributor
Hi Amy,
Short answer - yes, keywords cost fluctuate.

Longer answer - AdWords is an auction based advertising platform where you bid for position. The more advertisers in the mix for a certain keywords, the more bids can fluctuate. You can learn more about the auction and how it works here:
https://support.google.com/adwords/answer/3465869?hl=en&rd=1

However, it is more than just your bid that determines your position and rather your ad will show for a given search query. Your actual CPC will be determined by the ad rank of the next highest ad below you divided by your quality score. You can learn more about ad rank here: https://support.google.com/adwords/answer/1752122?hl=en&ref_topic=24937

As you will see from the articles in the above links quality scores play a very important role in this and a lot of times increasing CPC requirements for first page bid estimates and top of page bid estimates are from decreasing quality scores. This makes focusing on quality scores very important for any advertiser on AdWords but especially for grantees since grantees are limited to a max bid of $2.


Re: Fluctuating Keyword Costs?

Follower ✭ ✭ ✭
# 4
Follower ✭ ✭ ✭
Hi Amy,

To add to Robert's terrific answer, you should also consider going after the "long tail" keywords as they might be less competitive and under the $2 max bid. More info in the link below:

https://support.google.com/adwords/answer/2999770?hl=en

Cheers,
Vineesh..