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Keyword click charge is higher than the profit of one product

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Keyword click charge is higher than the profit of one product should I be using Adwords to advertise?  Can you please recommend options for Adwords or another system that is more appropriate?

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

Re: Keyword click charge is higher than the profit of one product

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

Really appreciate your advice, this gives me some things to go and research further.

 

Many thanks for your detailed reply

View solution in original post

Re: Keyword click charge is higher than the profit of one product

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭

Hi murenti,

 

Welcome to the community.

 

I can understand your situation.The keywords that you are targeting have higher CPC/high competition. In this situation i generally use to find out some medium/low competitive keywords from keyword tool.Also i try to find out some long tail keywords.The long tail keywords neutrally has low search volume but are much more targeted.

 

When i found that search network is very much costly/competitive for me than i like to shift to Display campaign to see whether it effective or not.

 

I think you should try those things before give up..

 

To know more about Long tail keywords you can go through the following discussions..

https://www.en.adwords-community.com/t5/Improve-results/What-is-the-difference-between-key-word-and-...

 

 

 

Re: Keyword click charge is higher than the profit of one product

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Hi Shuva,

Many thanks for your reply, can you please explain what you mean by "shift to Display campaign".  I Goggled it and this is what I found http://www.google.com.au/ads/innovations/displayoptimizer.html but I can't see it in my account.

Re: Keyword click charge is higher than the profit of one product

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆

Hi Murenti,

 

The decision depends on how the campaign is optimized, you need to work on campaigns optimization first to opt out adwords options. If used properly, adwords can bring the good results.

 

The actual CPC depends on the performance of your campaign and how optimized is your campaign.

 

Actual CPC you are paying is calculated as-

 

Actual CPC = (AdRank to hit /Quality Score of Advertiser) + $.01

 

Where

AdRank = Max. CPC x Quality Score

 

 

So these are the factors which contribute to the actual CPC.

 

So to lower the CPC, Ad rank needs improvement ie Quality score improvement

 

And Quality score depends on

·         Your keyword's past clickthrough rate (CTR)

·         Your display URL's past CTR

·         Your account history

·         The quality of your landing page

·         Your keyword/ad relevance

·         Your keyword/search relevance

·         Geographic performance

·         Your ad's performance on a site

·         Your targeted devices

 

So here are the ways to lower your CPC-

 

Relevancy is key:

Keep your keywords, ad text, landing page relevant

 

Use long tail keywords:

Use long tail keywords instead of very broader ones if you are limited by budget. They become more relevant as well.

Broader keywords generally have high CPC and less likely increase the conversion rate

 

Use proper keyword match types:

 

Use a combination of phrase, broad match modifier, exact matches to avoid the irrelevant clicks

 

Add negative keywords:

Add negative keywords to the campaign to block the unwanted clicks

 

Search uncompetitive keywords:

Use keyword research tool to search the keywords which are not so competitive, you need to may less for such keywords.

Taregting:

Use geo, language targeting if applicable.

 

Hope this helps!

SJ

 

 

 

 

Re: Keyword click charge is higher than the profit of one product

Participant ✭ ✭ ✭
# 5
Participant ✭ ✭ ✭

Hi, 

 

You can go through the following link.It may help..

 

Step By Step Guide to create Display Campaign

 

 

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

Re: Keyword click charge is higher than the profit of one product

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

Really appreciate your advice, this gives me some things to go and research further.

 

Many thanks for your detailed reply