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CPC in "Other" position as expensive as "Top" position

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

 

I have noticed in several of my campaigns that some keywords in the "Other" position are about as expensive or even more expensive than keywords in the "Top" position.

 

I talked to a Google rep and she said it's because of "the competition", but that explanation is rather vague. Have you also seen this, and do you have a more elaborate explanation?

 

Thanks,

Mihai

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Accepted by topic author Mihai S
September 2015

Re: CPC in "Other" position as expensive as "Top"

Top Contributor
# 5
Top Contributor
Hi Mihai,

Another thing to consider is your comparative AdRank for the keywords in question.

Let's say you have a keyword with a QS of 9/10 with a bid of $2, AdRank of 18 that is eligible for top of page position. Now let's say you have another keyword with a QS of 8/10 and a bid of $2. AdRank for this is 16, and possibly lower enough that 3 advertisers beat that for the top positions, meaning this one will show on the side.

Work on your QS to bring it up higher. Those keywords may need different ad copy to get more clicks. In that case, move them to a different or a new ad group so you can write more specific ads for them. That will get you more clicks, a better CTR, a better QS for the keyword, a better AdRank with the $2 bid, and, eventually, a top of page position.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords

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Re: CPC in "Other" position as expensive as "Top"

Top Contributor
# 2
Top Contributor

Hi Mihai, although vague, the Rep is right in their assessment.

 

Bear in mind each and every Ad auction is different; because of the various settings that can be made in AdWords, for any given auction there could be a very different set of advertisers entering that auction and with varying bids.  Your own bids may vary if you use bid modifiers.

 

So, a $2.00 bid at 3pm on a Wednesday for someone searching who lives in Alabama may be enough for your Ad to be shown in one of the top positions.  A bid of $2.00 at 8am in Florida may only be enough to get you near the top of the side Ads.

 

Jon

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

Re: CPC in "Other" position as expensive as "Top"

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hello and thank you for your answer,

I understand your reasoning, but this situation several problems:

1. The theory says I can have a lower CPC in the Other position, but this is not the case with these keywords. If I am to bid them even lower, I will lose almost all traffic. Does this mean that the actual CPC is the one from the Other position, and that the CPC from the Top position is the one that's cheap?

2. What is to be done in this case, since I cannot bring these keywords to profitability with CPCs as high as those in the Top positions? How do you optimize for profitability without losing traffic if you cannot actually lower the bids, because being in the Other position just means a 6 times smaller CTR at a higher price?

3. I see this happening consistently over time. Do you also see this in your campaigns, ad if so, is there a set of measures you generally take?

Thanks,
Mihai

Re: CPC in "Other" position as expensive as "Top"

Top Contributor
# 4
Top Contributor

Well... As (you and Jon in his reply)   mentioned in previous posts, there are keywords which are competitive and the bid is high. (And this depends on Geo location and scheduling).   As you correctly pointed out, lowering the bid could result in losing traffic;

 

My recommendation: if in the "other" positions, those keywords are not converting - pause them. Focus on less competitive, more "distinct" keywords which convert (within your  CPC limit and budget). Not all advertisers have huge resources bid high on competitive keywords.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’
Marked as Best Answer.
Solution
Accepted by topic author Mihai S
September 2015

Re: CPC in "Other" position as expensive as "Top"

Top Contributor
# 5
Top Contributor
Hi Mihai,

Another thing to consider is your comparative AdRank for the keywords in question.

Let's say you have a keyword with a QS of 9/10 with a bid of $2, AdRank of 18 that is eligible for top of page position. Now let's say you have another keyword with a QS of 8/10 and a bid of $2. AdRank for this is 16, and possibly lower enough that 3 advertisers beat that for the top positions, meaning this one will show on the side.

Work on your QS to bring it up higher. Those keywords may need different ad copy to get more clicks. In that case, move them to a different or a new ad group so you can write more specific ads for them. That will get you more clicks, a better CTR, a better QS for the keyword, a better AdRank with the $2 bid, and, eventually, a top of page position.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords

Re: CPC in "Other" position as expensive as "Top"

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
OK, this makes sense. A tiny drop in AdRank could take the keyword out of the top 3 positions, so I will focus on QS with those keywords.

I thank everyone for your answers.

Re: CPC in "Other" position as expensive as "Top"

Rising Star
# 7
Rising Star
Hi Mihai,

I completely agree with Pete on this. Your QS affects the cpc's you receive when your ad gets clicked on. If the QS for the 'Other Positions' keywords is lower than your 'Top' position keywords, then they could definitely cost as much as the 'Top' position keywords.

I would try and improve your ad messaging to try and make it more relevant to the ad groups they are used in. Use the same keywords from the ad group in you ad messaging, this helps build relevance. Also your landing page needs to have the same messaging present on it too complete the relevancy from the keyword to the landing page.

If you can improve these 3 factors, it should help you improve your QS over time which will help you lower your CPC's.

Hope this Helps!

Cheers!

Shashank
Cheers,
Shashank Singh, AdWords Rising Star |
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