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Created my first campaign & selected keywords. After 3 days, I have 136k impr, 137 clicks, & cpc of $0.94. Is this good?

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I am just not sure what is considered good and what isn't. I am also not sure what are good keywords to use. Finally, I wonder why sometimes when I type these search words into the Google bar I see my ad and other times I do not. Just want to talk to someone who has done this before so I create a cost-effective campaign. Thanks.


This popular discussion was copied from the former Help Forum.


Top Contributor, cobnut, replied:


Hi innovativecio, and welcome to the forum.

I have to say I'm a little disturbed by your post.  Are you able to track any conversions from the clicks you've received?  You've spent roughly $130 in three days and if you're not able to track that this money has been well-spent - that it's returning the response (sales, sign-ups, etc.) - you want from Adwords then you should really PAUSE your campaign(s) until such time as you do have conversion measuring processes in place.
Putting this important issue to one side for a moment, there really is no such thing as "good" or "bad" performance for Adwords.  Each account is different and even accounts advertising very similar products or services may perform differently, while all being quite acceptable in terms of how they operate.  
I always encourage Adwords users to think more in terms of Return on Investment rather than outright "cost".  A company can spend many tens of thousands of dollars per month on Adwords, or just $50, what's important is whether that spend returns appropriate (and/or acceptable) returns.  
Having said this, there are some indicators of performance that can be looked at.  CTR (click-through-rate) is usually a good one to look at.  This is the ratio of impressions to clicks and generally speaking you want to aim for the highest value you can achieve.  Again, there are no hard and fast rules, but I'd be happy with anything over 10% in most cases, and very happy with anything over 20%.  Equally, I'd be concerned with anything less than 2-3%.
Given your stats, your current average CTR is 0.1% which I'd argue is poor by any definition.  This sort of result can indicate (usually) one of two things - either your keywords are too "broad" - your ads are triggering on search terms which are barely (if at all) relevant to your ads/company, and/or your ads themselves do not appear relevant to searches which themselves are.  In most cases, it's the former - keywords that are too broad.
It's very hard to say whether an average CPC of $0.94 is good or bad.  It's not particularly high, but it may be it should be $0.09, it's impossible to tell without knowing more about your account/company/product.
As to why sometimes you see your ad and sometimes not, this may actually be your "fault".  It's actually quite rare for an ad to appear for all possible opportunities.  Google gets a lot of searches per day but you'll specify that you only want to spend $X per day.  Google knows how often your ads are clicked when shown and what those clicks tend to cost, so will show your ad only as often as will normally accrue your daily budget in any given day.  Let's say you have a keyword that's searched 10,000 times a day and your ad is clicked once every 10 times it's shown (a CTR of 10%) at a CPC of $1.  If Google showed your ad every time it could, your spend for the day would be $1000!  So, if you only want to spend $100 a day, Google may only show your ad once in every 10 times it could.  Your activity could also be changing this.  If a search user searches on the same term repeatedly and doesn't click the ads shown, Google will assume they're not of interest and may stop showing them.  It's not recommended to search for your own ads - you should use the Ad Preview Tool instead.
Can you provide some more detail on the following?
Give an example of one or two keywords you're using, including their match type (broad, phrase, exact, etc.)
Provide the URL of your site
User Tomhalejr added:
Fantastic post Jon! I do wonder though...
Since innovativecio is a beginning advertiser, and has only created one campaign, it seems pretty likely that this campaign may be opted into both search and display networks. As Jon says, CTR may be a good indication of whether or not your ads are effective, but CTR between the two networks will vary drastically.
Jon's point about conversion strategy is the crucial point though. Your performance may be bad, or good, but you won't know for sure without some kind of conversion strategy. Deciding whether or not to advertise on the search or display networks is one of those questions that hard to answer if you do not have any conversion strategy. I also completely agree with Jon that until you can get a better idea of the effectiveness of your advertising, and learn a little more about adwords, it's not a bad thing to temporarily pause your campaign. It's much easier to learn adwords once you have an account created, and the interface to look at, then just reading through the docs without the UI.

Re: Created my first campaign & selected keywords. After 3 days, I have 136k impr, 137 clicks, &

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If you find this post useful, it would be useful to read an article witten by our Top Contributor, Jon: "Where to start (I) - Before I begin".