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Do Keyword Auction Prices Differ from Region to Region?

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# 1
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For the past year our team has been happy with the extremely low CPC rates we achieved with an ALL COUNTRIES AND TERRITORIES campaign. It has been inexpensive and mildly successful.

This past week, we used the same keywords to launch 6 additional campaigns, each targeting a different major US city.

 

What we noticed, however, is that to achieve the same page rank in the major metropolitan market, that we had to increase our bid by 10 to 20 times what we've been using in the ALL COUNTRIES market. [Because we are using a different Text Ad and Landing Page (which are better optimized than our previous campaign), it is not a true regional split test.]

 

Does this mean that the extremely low CPC ads in our ALL COUNTRIES campaign have only been showing in relatively poorer markets?

In other words, how much does Keyword Bidding vary from region to region, and if so, what are the most expensive markets I can use to successfully benchmark my CPC bid for our next ALL COUNTRIES campaign?

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Accepted by topic author daniel g
September 2015

Re: Do Keyword Auction Prices Differ from Region to Region?

[ Edited ]
Top Contributor
# 2
Top Contributor

Hi @daniel g

Indeed, CPC is location dependent, and varies among locations,

 

My assumption is that  in the "all the country" campaign, in competitive locations, where competition was high, your ad did not achieve  an ad-rank high enough and the was not shown or was shown in low positions;

Generally speaking, I  recommended to set  separate campaign per location:  (mainly) for  reporting convenience and (also)  to customize the landing page per location. (Would the landing page for the East coast be the same as in the West?) 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Marked as Best Answer.
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Accepted by topic author daniel g
September 2015

Re: Do Keyword Auction Prices Differ from Region to Region?

Top Contributor
# 3
Top Contributor
Hello, Daniel.

Although you won't be able to see data at keyword level, you can check the Dimensions tab and choose View: geographic or View: User locations on the left button in the next row.

Search for the cities you're targeting in the new campaign in the data of the old campaign and you'll know if you've shown there previously or not, how often and how much you used to pay for a click.

In addition to that, maybe the competition is indeed higher in the large cities (and thus CPCs will clearly be higher), maybe your keywords did not yet get a chance to get their quality score settled (it takes some time), maybe you will have to bid higher to speed up the process (giving them more chances to show and have your ads clicked and thus raise their QS).

But, like I said, the first place to look is the Geographic tab in your old campaign. As Moshe says, maybe your ads didn't even show there, in the first place (it's easy for a campaign to use its daily budget without even showing in big cities when targeting all countries).
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author daniel g
September 2015

Re: Do Keyword Auction Prices Differ from Region to Region?

[ Edited ]
Top Contributor
# 2
Top Contributor

Hi @daniel g

Indeed, CPC is location dependent, and varies among locations,

 

My assumption is that  in the "all the country" campaign, in competitive locations, where competition was high, your ad did not achieve  an ad-rank high enough and the was not shown or was shown in low positions;

Generally speaking, I  recommended to set  separate campaign per location:  (mainly) for  reporting convenience and (also)  to customize the landing page per location. (Would the landing page for the East coast be the same as in the West?) 

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 daniel g
September 2015

Re: Do Keyword Auction Prices Differ from Region to Region?

Top Contributor
# 3
Top Contributor
Hello, Daniel.

Although you won't be able to see data at keyword level, you can check the Dimensions tab and choose View: geographic or View: User locations on the left button in the next row.

Search for the cities you're targeting in the new campaign in the data of the old campaign and you'll know if you've shown there previously or not, how often and how much you used to pay for a click.

In addition to that, maybe the competition is indeed higher in the large cities (and thus CPCs will clearly be higher), maybe your keywords did not yet get a chance to get their quality score settled (it takes some time), maybe you will have to bid higher to speed up the process (giving them more chances to show and have your ads clicked and thus raise their QS).

But, like I said, the first place to look is the Geographic tab in your old campaign. As Moshe says, maybe your ads didn't even show there, in the first place (it's easy for a campaign to use its daily budget without even showing in big cities when targeting all countries).
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: Do Keyword Auction Prices Differ from Region to Region?

[ Edited ]
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# 4
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Thanks for confirming my suspicion, MosheTLV. I've been wanting to swap our ALL COUNTRIES AND TERRITORIES campaign for a more targeted 200 WEALTHIEST CITIES in the world campaign, segmented into several groups, as I'm not convinced we're picking up enough quality traffic from the middle of nowhere / undeveloped country where people are clicking on our ads from cyber cafes...(which has been confirmed further down the sales funnel in several cases).

Re: Do Keyword Auction Prices Differ from Region to Region?

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# 5
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Thanks, AdWiser. I've been having trouble convincing my team to segment this campaign and that data will probably help. If not, then I'll run a true split test experiment to generate some more specific data.