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Sitelink Descriptions Lead to Higher CPC

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# 1
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Hi everyone,

 

I set up sitelink descriptions for my clients, all on 1/18/14, so a full day starting 1/19/14. For one of my clients we run brand term campaigns in various markets. The CTRs have increased for all, but for some reason the avg CPCs suddenly jumped 100% to 300%.

 

It all correlates to those descriptions, but for only that client. Nothing else has changed in that time and I can't imagine a competitor coincidentally bidding higher on the my client's brand terms on the exact day we started running these descriptions.

 

Has anyone else experienced this?

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Re: Sitelink Descriptions Lead to Higher CPC

Top Contributor
# 2
Top Contributor

Hi there;
There could be a number of reasons; One you have already mentioned: competition;
The other is ad-rank; For sitelinks to show you need postions 1-3 . This might require a higher bid;
I would start by analyzing  the auction insight  report,  to "get an idea" whether this is competition.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Sitelink Descriptions Lead to Higher CPC

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# 3
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Thanks for the response. I have no idea what it could be.

 

I know adrank can affect my CPC, but to give a little more history. These are my client's brand terms (nationally known company) as opposed to us bidding on brand name products. The competition is fairly low and these campaigns have been running for a year now.

 

Our QSs are all 10s for brand terms and our avg position has always been 1 (for the most part). There has not been much (if any) variance in that year. Sure we've seen the ocassional increase in CPCs when we rotated new text ads in, but quickly (a few days) went back to normal levels as the ads gained history.

 

But this was purely from adding sitelink descriptions and it's now been 11 days with plenty of volume to gain that history, but still the overall avg CPCs have more than doubled. The CPC was extremely low to begin with, but when you are talking about a large volume, doubling the cost makes a big difference.

 

I'm getting close to joining that Google conspiracy club.  =)

 

 

Re: Sitelink Descriptions Lead to Higher CPC

[ Edited ]
Top Contributor
# 4
Top Contributor

Ok; this is interesting;
Can I ask why did you add the descriptions? Didn't "pure sitelinks" convert well? - Or you did not have sitelinks at all?

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Sitelink Descriptions Lead to Higher CPC

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# 5
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We have always used sitelinks for this client and they do work well, but we are always looking to improve and thought adding the descriptions could be a quick win.

It definitely was a win with regard to CTR (and some movement in conversions, but need more time to tell). Overall, we have seen a 33% increase, but some campaigns seeing high as 100%+ increase (and the CTRs were good to begin with).

What I didn't expect was the increase in CPC. Even if it was an increase while it gained history with the descriptions, we have seen the CPCs drop back down much faster than this. The only thing I have been able to do at this point is start dropping max CPC to see if it comes back down.

Re: Sitelink Descriptions Lead to Higher CPC

Top Contributor
# 6
Top Contributor

Hmm...This is interesting;

If there  were an option for an extension experiment  (under Adwords experiments) - I would suggest to test with and without. But experiments are not available for extensions,

 

Please follow on the trend and come back and update,,,,

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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