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Cost Per Click

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hi,

Its been around 4 years I am with google adwords but still confused that how it works.

Here is the situation. I have one campaign just for mobile devices. Carefully slected keyword and add text. QS is 10/10 every keyword. daily budget is £100 a day but my ad never gets to 1st place and I pay very high cost for clicks as well. I get a lots of impression but less clicks. I tried everything but now I am disappointed and thought lets leave it like this. Any help in this situation will be much appriciated.

1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Re: Cost Per Click

Explorer ✭ ✭ ✭
# 4
Explorer ✭ ✭ ✭

That's just it. You don't know if your bid is good enough. You assume that it is. You forget that others may have a QS of 10 also. As QS is mainly a function of CTR, if they have a better CTR, they are in fact better. If they are out-bidding you, they will have a better position. Simple as that.

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Re: Cost Per Click

Explorer ✭ ✭ ✭
# 2
Explorer ✭ ✭ ✭

What is your average position? Remember that it's an average. Ads may show in first a few times but the average will give no clue that it ever did. Ads in 1, 1, 4, 5, 6 and 6th place averages 3.8 (23/6).

 

Ads are ranked using the basic formula: bid x QS. There's likely a bit more to it but that's the idea anyway. You have a QS of 10 so you are the creme de la creme, your ads have some of the highest CTR for those keywords. Also important to note for your position and for mobile devices since that's your target. That doesn't mean that you are the very best. There may be others at 10 and even beyond. Therefore, you must bid higher if you want to get first place.

 

But even so, it doesn't mean you will get first place every single time. Things are not static. There are other advertisers trying to do the same thing and there's dozens of factors affecting your rank and costs for each ad being served. But you may get first place 90% or more of the time if things work out.

Re: Cost Per Click

Follower ✭ ☆ ☆
# 3
Follower ✭ ☆ ☆

Thanks for your comments and help. But dont you think that if the QS is 10 CTR and bid is good enough then cost per click should come down and ad should ranked batter like 1-3?

Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Re: Cost Per Click

Explorer ✭ ✭ ✭
# 4
Explorer ✭ ✭ ✭

That's just it. You don't know if your bid is good enough. You assume that it is. You forget that others may have a QS of 10 also. As QS is mainly a function of CTR, if they have a better CTR, they are in fact better. If they are out-bidding you, they will have a better position. Simple as that.

Re: Cost Per Click

Not applicable
# 5
Not applicable

I understand the concept, but it's not making sense for a small business like myself.  Companies with huge advertising budgets take the best  positions. There should be some kind of a break for small business, along with an account executive that works with you until results are reached. Otherwise, I see this as a waste of time and money.

Re: Cost Per Click

Explorer ✭ ✭ ✭
# 6
Explorer ✭ ✭ ✭
>> Companies with huge advertising budgets take the best positions.

Not necessarily. You can still get the top positions with better QS. The small business can outsmart the big ones in Adwords and it happens often.

>> There should be some kind of a break for small business,

There is. It's called QS. and puts all businesses, big and small, on the same level playing field. A smart small business can outdo a big one that is not as smart.

>> along with an account executive that works with you until results are reached.

which would give an advantage to that business. That's not a level playing field. One must also keep in mind that Google provides the platform for advertisers and it's a self-serve system. They are not there, and don't have the resources, to hand-hold each advertiser. Were all on our own. There are companies out there that will help you, for a fee of course which can be worth it.