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SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

[ Edited ]
Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

Now tell me, how do you decide what to set your Max CPC at???

Keywords do not always have to cost the Max CPC Google proposes.

Let’s use this South African scenario, the keyword Tax Consultant is extremely popular and there is a lot of competition for the keyword. As such it will cost a lot; lets say the CPC is ZAR 40.00 for a top of page click.

 

However, not all words cost the same as not all words have the same level of competition.

So a phrase like Tax Consultant Gauteng might only cost ZAR 35.00 per click

And a phrase like Tax Consultant Centurion Gauteng might only cost ZAR 22.00

While the phrase Tax Consultant in Irene Centurion might only cost ZAR 14.00

But looking harder, the phrase Small Business Tax Consultant in Irene Centurion might only cost ZAR 9.00.

 

SO HERE IS THE TRICK!

If we insert the Broad Match Modify keyword +Tax +Consultant into our campaign and set the Max CPC to ZAR 42.00, we are eligible to appear for ALL search phrases mentioned above. Since there are literally thousands of searches every day that include these 2 words and would trigger our adverts, we can easily spend a Daily Budget of ZAR 8 000.00.

 

However, if we set it the Max CPC to just ZAR 25.00, we may only be eligible to appear for the last 3 phrases. This is because there will be much fewer searches each day that include these keywords and would trigger our ads, as such we may only be able to spend ZAR 1 000.00 per day.

 

But if our client has a very tight budget, we may need to set the Max CPC to just ZAR 10.00. This means that we may only be eligible to appear for the last phrase. Since there won’t be many searches each day that include this phrase, we may only be able to spend a total daily budget of ZAR 200.00 per day.

 

This is why AdWords suggests a higher Max CPC, so that you can appear for the highest possible volume of search results. Higher volumes of searches increase your chances of getting clicks and hopefully conversions.

 

Start by setting your Max CPC relatively low. If you don’t meet your Daily Budget, then increase your Max CPC slightly as there are obviously not enough daily searches of the phrases and keywords you are using at that price. Keep doing this every few days until you start meeting your daily budgets.

 

For more of my strategies and SEM tips and Tricks, please find me on Google+

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Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Rainer Schmid
September 2015

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

Top Contributor Alumni
# 9
Top Contributor Alumni

Thank you for removing the unapproved links to outside content.

 

For what it's worth, the Community doesn't have a formal body of people designated as "moderators." What we do have are TCs and RSs--Top Contributors and Rising Stars--who perform many of the same functions.

@MosheTLV  is a TC of long standing and one of our most respected Community members.

 

(For future reference, the colored bars beneath different Community members names have meaning--different colors mean different things.)

 

~*~*~*~*~

 

More generally, I would actually advise any advertiser working to lower their bid costs and make the best use of their daily budget to dive much more deeply into their data than the original post in this discussion suggests. Not all keywords--and clicks--are created equally. Some are of more end value than others.

 

 

Varying click costs, keyword match types, negative keywords, ad messaging, seasonality (from the "hour to hour" type all the way through the "season of the year" type), comparative lead value, and ROI are all important.

 

None of these elements  should be disregarded when it comes time to optimizing budgets.

 

 

 


Theresa
Google AdWords Top Contributor
*~*~*~*~*~*~*~*

View solution in original post

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

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

[ Edited ]
Follower ✭ ✭ ☆
# 11
Follower ✭ ✭ ☆

Thanks for all the comments everyone.
I really do appreciate your additional tips and advice.

I'll post another Strategy this Friday and I would appreciate it if you would also add your own experiences to the post.

PS, I wont add any non-Google links to the post this time Smiley Happy

View solution in original post

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

Top Contributor
# 2
Top Contributor

Hello Ranier;

Please edit your post and remove external links;

Generally speaking, when quoting / linking to external sources   we prefer content written or endorsed by Google. This we know is credible content.  (At least to a high degree of confidence)

 

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’

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

Follower ✭ ✭ ☆
# 3
Follower ✭ ✭ ☆
Hi MosheTLV
Links are now plainly visible.

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

[ Edited ]
Top Contributor
# 4
Top Contributor

Rainer;
This was not the request! The request was to remove the links, since they are directed to your blog - on G+ (aimed to derive traffic? SEO?)
Any further reading could be directed to a Google source.
Thank you

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’

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

[ Edited ]
Follower ✭ ✭ ☆
# 5
Follower ✭ ✭ ☆

The links have been removed - I would appreciate a little more tack and kindness in future. I see that you are not a moderator, yet I have still abided by your request.

The purpose for my posts and links is simply to share knowledge and grow the AdWords community knowledge base. All my information has been assimilated from numerous Google sources, my Google Account managers or Certified Google Regional Trainers.

 

FYI, Driving traffic to a personal G+ page will in no way assist SEO activities.

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

Top Contributor
# 6
Top Contributor

Rainer;

Thank you for removing the links;

To wrap up:

I  asked  you to remove the links since, as said, we prefer content from  Google's  endorsed / owned  source. This is a Google property, and we cannot verify the accuracy of the non-Google's content, and a user could be confused or mislead. Hence, we prefer to avoid  linking non-Google sources. (As much as possible. Not always there is a good Google's content.   Our disagreement on the G+ content contribution to SEO is an example.)

 

Moreover,  a random user searches on a given topic, may  find a discussion in this community, and might think that  external links are also endorsed by Google. 

Also note:  the community guidelines prohibit content aimed self-promote the user's business.

 

I hope this makes sense.

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’

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

Follower ✭ ✭ ☆
# 7
Follower ✭ ✭ ☆
Thank you MosheTLV

I appreciate your reply.

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

[ Edited ]
Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭

Hi Rainer interesting tip.

 

I would take it a bit further though and add an ad group with mod broad match variation of each of the different costing keywords you have given as an example.

 

Only adding the mod broad + to the two main keyphrases making up the keyword.

 

I would then ensure top 3 location for the first week or two depending on daily budget and enough historical data.

 

Thereafter I would mine into which ad pos brings in the most conversions at the lower cost per conversion.

 

After getting perfect location for each, I would setup auto rules to ensure they get that pos.

 

When there is enough data to mine search terms, I would add those that convert as phrase match into new ad groups and run top 3 location strategy again and then once again refine further.

 

After more data I will check the performing phrase match ad groups and keywords and segment data to see search term match type to determine if adding as exact will justify the means.

Google Regional Trainer chosen by Google

With over 8 years experience in AdWords and Qualified. From South Africa.
Marked as Best Answer.
Solution
Accepted by topic author Rainer Schmid
September 2015

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

Top Contributor Alumni
# 9
Top Contributor Alumni

Thank you for removing the unapproved links to outside content.

 

For what it's worth, the Community doesn't have a formal body of people designated as "moderators." What we do have are TCs and RSs--Top Contributors and Rising Stars--who perform many of the same functions.

@MosheTLV  is a TC of long standing and one of our most respected Community members.

 

(For future reference, the colored bars beneath different Community members names have meaning--different colors mean different things.)

 

~*~*~*~*~

 

More generally, I would actually advise any advertiser working to lower their bid costs and make the best use of their daily budget to dive much more deeply into their data than the original post in this discussion suggests. Not all keywords--and clicks--are created equally. Some are of more end value than others.

 

 

Varying click costs, keyword match types, negative keywords, ad messaging, seasonality (from the "hour to hour" type all the way through the "season of the year" type), comparative lead value, and ROI are all important.

 

None of these elements  should be disregarded when it comes time to optimizing budgets.

 

 

 


Theresa
Google AdWords Top Contributor
*~*~*~*~*~*~*~*

Re: SEM Strategy #5 : Optimising your Max CPC and Daily Budgets

[ Edited ]
Community Manager
# 10
Community Manager

Hi Rainer, 

 

Thanks for adhering to TC Moshe's suggestions. 

 

Just want to reiterate that Moshe, and all other Top Contributors on this Community enjoy the right and the responsibility to foster healthy discussions and ensure that all users adhere to the Community guidelines. 

 

Thanks again for adhering to the suggestions given,

Mini