AdWords
2.5K members online now
2.5K members online now
Improve your AdWords performance and boost your ROI, CTR, and Quality Score
Guide Me
star_border
Reply

Help with Enhanced CPC?

Explorer ✭ ✭ ☆
# 1
Explorer ✭ ✭ ☆

I inherited a PPC account and the previous PPC manager turned on Enhnaced CPC for a campaign that receives about 15 impressions in a 14 day span but at a good CTR of 46.67% because it is a branded term campaign.

 

The problem is that the max CPC is set to $22.00 and the AVG CPC is $14.99 BUT the estimated top page bid is $0.15 cents and the quality score of 95% of the keywords are 10/10.

 

My question is:  Why would Google charge an average of $14.00 bucks even though (according to the "Est Top Page Bid" column) is $0.15 cents?  Is it because my Max bid was set at $22.00 bucks and Google said well if you're willing to pay that much, we are willing to charge even though you dont have to pay that much.  Make sense?  Thanks in advance.

PPCSophie
3 Expert replyverified_user

Re: Help with Enhanced CPC?

Participant ✭ ☆ ☆
# 2
Participant ✭ ☆ ☆
Yes, thats right. You need to reduce your max bid.
Marked as Best Answer.
Solution
Accepted by topic author PPCSophie
September 2015

Re: Help with Enhanced CPC?

Top Contributor
# 3
Top Contributor

Hi PPCSophie,

 

The estimated top page bid is just an estimate, but it is surprising that you are spending almost 100 times more than the estimate. I don't believe Google runs the bid or CPC up to your maximum bid just to get money out of your account. That's not how the auction works.

 

If you reduce your max CPC bid, be careful and watch closely. There's likely a reason the bid is that high.

 

Best of Luck!

 

Pete

 

petebardo -- Deadhead doing AdWords

Re: Help with Enhanced CPC?

Top Contributor
# 4
Top Contributor

Hi Sophie, what's the Average Position of your Ads?  What match types are you using with your Keywords?  You say that "95%" of your Keywords are 10/10 for QS, but how many have you got and what are the other scores (95% of 100 with 5 being 7/10 is very different from 95% of 10,000 with 500 being 1/10).

 

I'm wondering if you're in a bidding war with another advertiser and if the CPC cost is a very (very) steep curve down from the #1 position...

 

Jon

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

Re: Help with Enhanced CPC?

Explorer ✭ ✭ ☆
# 5
Explorer ✭ ✭ ☆

Hello Cobnut,

 

There are 9 keywords and 7 out of the 9 have a 10 quality scores and the other 2 are at 7.  The match types are set at phrase & exact.  I changed the bid for all those keywords to $5.00 and they are still at position 1.4, so i trhink it is really what I described earlier that because my max bid was set so high it charged $14 bucks a click but yet the estimated first page bid is ony $0.20 cents.

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

Re: Help with Enhanced CPC?

Top Contributor
# 6
Top Contributor

Hi Sophie, AdWords really doesn't work that way - if it did no one would use it.  You only ever pay what is sufficient to beat your nearest competitor by 1 penny, and which is within your budget.  So, for example, if I have two competitors and one has a Max. CPC of $1 and another a Max. CPC of $2, if I set my Max. CPC to $1.50, I'll end up at position #2 and I'll pay just $1.01, not $1.50.

 

The math is slightly more complex than this as you need to take into account the effect of Quality Score on everyone's bids but this essentially is the idea.  If you paid $14 for a click it's because someone else was bidding $13.99, and because your Max CPC was so high.

 

Don't forget also that AdWords is not static - advertisers are constantly coming and going every minute of the day.  If you're in a high competition market (and with CPCs that high, I presume you are) you could have hundreds of advertisers jockying for position during any one hour.  Right now there's someone bidding $13.  In ten minutes time the highest bidder might be only $4, that's why all the cost metrics are averages, not absolutes.

 

Jon

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

Re: Help with Enhanced CPC?

Explorer ✭ ✭ ☆
# 7
Explorer ✭ ✭ ☆

Thanks Cobnut but my concern is why is the estimated top page bid $0.20, why wont it tell me the right number & even if the number is not absolute its far off to pay $14 for a click but est top page bid says $.20.  Ive never seen that before.

PPCSophie

Re: Help with Enhanced CPC?

[ Edited ]
Top Contributor
# 8
Top Contributor

I remember I made a mistake once. I remember more, actually, but this one is related to a potentially related situation Smiley Happy.

 

I activated "enhanced CPC" and after a few days I also started using dayparting. Sometime during lunch, competition was high, so I decided to bid something like 250%. But that 250% was sometimes combined with up to 30% more from enhanced CPC, so I ended up paying, for an hour or two, a maximum of 2.5 x 1.3 = 3.25 more than the regular bid.

 

Estimated top page bids were not shown by then I think.

 

Anyway, if you somehow manage to compete, as Jon said, with 1-2 advertisers who also bid very high during those times of the day, you may end up paying very much to beat them (which is what  the system tries when you use enhanced CPC).

 

It would be a costly situation to have all three of you race for the top spots and use the same day parts & also enhanced CPC ...

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: Help with Enhanced CPC?

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭

Hi Jon
I'm a new user so a bit unfamiliar with all the protocol and netiquette etc, so please forgive me for butting into a conversation like this. I have a similar to concern to Sophie, but coming from a separate objective. I have very low competition and specialised keywords, to the extent that, one some of them, there may well be NO competition at all.
Assume that I am the World Champion of some esoteric sport, and people are searching for that sport (which does not require any gear, so there are no shops vying for attention). My ads are likely to have a very high relevance, and people are likely to be happy with what they find. But I can only set maximum CPC to $0.01.  If I set my maximum budget to $5 a day, how do I know that AdWords will not simply charge me the maximum, yielding 500 views per day?
If there were NO competition whatsoever for a specific keywoard (in other words, no second-highest bidder, what is the MINIMUM amount I would be charged per click. 
I am aiming to maximise clicks through to my YouTube videos, at the lowest possible cost. The aim would be to do it for less than what I would be earning from AdSense on those videos. So the video IS the product, if one could put it that way. I hope this all makes sense, and I hope you can help me.
Thanks in anticipation

Rob