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Exact Match costing MORE than Broad or Phrase...!?

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello all:

 

I could use some insight. Recently a campaign we have been running for a long time suddenly, without any clear explanation had its CPC jump from under $1 to $3 in two months. Below are stats from THE main keyword. Doing a segmented keyword "Search Terms Match Type" I see this: CPC is in bold.

Quality Score of 9/10.

 

                        Impr.   Clicks CTR Avg. CPC Cost         Avg. Pos. Converted clicks Cost / converted click Click conversion rate

 

Broad match   1,307    86 6.   58%    $2.67    $229.28        1.1   10    $22.93    11.63%

 

Phrase match 2,036    199    9.77%    $2.63    $524.   33    1.2    21    $24.97    10.55%

 

Exact match   2,528    413    16.34%  $3.12    $1,289.   32     1.1    76 $16.96        18.40%

 

How can an exact match with great stats cost MORE than a broad match with poorer stats when all else is equal? 

 

Any help is much appreciated!

Mark  <edited>

 

NOTE: this post has been edited by a Community Manager in order to remove personal information.

 

 

1 Expert replyverified_user
3 ACCEPTED SOLUTIONS

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Watch Repair E
September 2015

Re: Exact Match costing MORE than Broad or Phrase...!?

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭
Hi Mark,

This is actually not an uncommon occurrence. What you need to realise is that the CPC there is an average cost. When you have an exact match keyword it tends to be a good performer, but not only for you but for your competitors as well. Thus almsot all competitors will be bidding on the exact match.

With regards to the broad, this keyword is able to match a lot more terms than the exact match and may often enter auctions with a lot less competition thereby getting a lower CPC then the exact match, just by sheer numbers.

That is one explanation, and the most likely looking at the above stats.

What you also need to remember is that some account managers use a scaled bidding approach by having all match types in one ad group and then bidding higher on exact, lower on phrase and lower on broad. This also drives the competition up for the exact match as some advertisers are willing to pay more and thus the auction is more expensive on the whole.

With regards to the jump in CPC the first place I would look at is the Auction insights report. It is most likely to be new competitors on the scene, increasing the competition in all the auctions. Learn more here:
https://support.google.com/adwords/answer/2579754?hl=en

Hope this helps

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Watch Repair E
September 2015

Re: Exact Match costing MORE than Broad or Phrase...!?

Top Contributor
# 3
Top Contributor
Completely agree with Clynton here.

"When you have an exact match keyword it tends to be a good performer, but not only for you but for your competitors as well. Thus almost all competitors will be bidding on the exact match."

It very precisely answers the query.

Thanks
Ratan

About Me: Community Profile | Ratan Jha INC.
If this or any other post solved your question, do not hesitate to accept it as the solution.

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Watch Repair E
September 2015

Re: Exact Match costing MORE than Broad or Phrase...!?

Participant ✭ ☆ ☆
# 4
Participant ✭ ☆ ☆
Hi

Excellent answer from Clytnon!

Couple of additional comments may be worth considering:

- Device, could it be a competitor is modifying bids on a device that is forcing your price up for those particular auctions (has your traffic changed by device over time?).
- Competitors Bid Strategy. If using Target Cpa for example, this may be forcing up the ad rank for that particular kw significantly (depending on account structure).
- Competitors / Phase - This may be a phase. Often (rightly or wrongly) a new entrant in the ppc market may be very keen on bidding on your brand keywords. This can happen quite a lot and could be an explanation. This tends to happen a lot via exact bidding, which would support the scaled bidding theory.
- Your own bidding strategy. Different strategies behave differently and could be a factor (without knowing how you bid).

All in all, Clynton nailed it.

All the best

James Edward

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Watch Repair E
September 2015

Re: Exact Match costing MORE than Broad or Phrase...!?

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭
Hi Mark,

This is actually not an uncommon occurrence. What you need to realise is that the CPC there is an average cost. When you have an exact match keyword it tends to be a good performer, but not only for you but for your competitors as well. Thus almsot all competitors will be bidding on the exact match.

With regards to the broad, this keyword is able to match a lot more terms than the exact match and may often enter auctions with a lot less competition thereby getting a lower CPC then the exact match, just by sheer numbers.

That is one explanation, and the most likely looking at the above stats.

What you also need to remember is that some account managers use a scaled bidding approach by having all match types in one ad group and then bidding higher on exact, lower on phrase and lower on broad. This also drives the competition up for the exact match as some advertisers are willing to pay more and thus the auction is more expensive on the whole.

With regards to the jump in CPC the first place I would look at is the Auction insights report. It is most likely to be new competitors on the scene, increasing the competition in all the auctions. Learn more here:
https://support.google.com/adwords/answer/2579754?hl=en

Hope this helps
Marked as Best Answer.
Solution
Accepted by topic author Watch Repair E
September 2015

Re: Exact Match costing MORE than Broad or Phrase...!?

Top Contributor
# 3
Top Contributor
Completely agree with Clynton here.

"When you have an exact match keyword it tends to be a good performer, but not only for you but for your competitors as well. Thus almost all competitors will be bidding on the exact match."

It very precisely answers the query.

Thanks
Ratan

About Me: Community Profile | Ratan Jha INC.
If this or any other post solved your question, do not hesitate to accept it as the solution.
Marked as Best Answer.
Solution
Accepted by topic author Watch Repair E
September 2015

Re: Exact Match costing MORE than Broad or Phrase...!?

Participant ✭ ☆ ☆
# 4
Participant ✭ ☆ ☆
Hi

Excellent answer from Clytnon!

Couple of additional comments may be worth considering:

- Device, could it be a competitor is modifying bids on a device that is forcing your price up for those particular auctions (has your traffic changed by device over time?).
- Competitors Bid Strategy. If using Target Cpa for example, this may be forcing up the ad rank for that particular kw significantly (depending on account structure).
- Competitors / Phase - This may be a phase. Often (rightly or wrongly) a new entrant in the ppc market may be very keen on bidding on your brand keywords. This can happen quite a lot and could be an explanation. This tends to happen a lot via exact bidding, which would support the scaled bidding theory.
- Your own bidding strategy. Different strategies behave differently and could be a factor (without knowing how you bid).

All in all, Clynton nailed it.

All the best

James Edward

Re: Exact Match costing MORE than Broad or Phrase...!?

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
Thank you to one and all and especially to Clynton! I really appreciate you taking the time to offer a full answer including suggested readings! Thanks. Mark

Re: Exact Match costing MORE than Broad or Phrase...!?

Participant ✭ ✭ ✭
# 6
Participant ✭ ✭ ✭
Glad I could help! Good Luck

Exact Match costing MORE than Broad or Phrase...!?

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

If the auction is happening at the search term level, why would my keyword matter?

 

If the auction is happening for the same search term with a broad match kw and a exact match kw with the same Max CPC bid, same bidding strategy, and same ad, shouldn't the distribution of conversions (over time) be the same?

 

Here is what I am seeing for exact matches of the search term:

 

Broad Match KW --> Lower QS - More Conversions - Lower Cost/Conv

Exact Match KW --> Higher QS - Less Conversions - Higher Cost/Conv

 

Again, in this example Max CPC bid is the same, bid strategy is the same, and the ad is the same.

 

Thanks for any feedback / insight.