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What is the downside of cheap CPC rates?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

The keyword estimator shows that at 25 cents CPC I would get 10 X more clicks, thousands more impressions, and appear in the 3-4 spot compared to paying $5 per click which would give me the 2-3 spot. What am I missing? What is the downside of making the 25 cent bid?

 

If you need details here is an example:

25 cent CPC, 54-66 clicks, 5364-6556 impressions, position 3.0-3.7

$2 CPC, 13-15 clicks, 696-850 impressions, position 2.7-3.2

$5 CPC, 6-7 clicks, 235-286 impressions, position 1.8-2.2

 

My budget is low--$16 per day if I run the ads every day.

1 Expert replyverified_user

Re: What is the downside of cheap CPC rates?

Participant ✭ ☆ ☆
# 2
Participant ✭ ☆ ☆
Hello,

This can happen withe a limited budget.

On this help page they explain :
http://support.google.com/adwords/answer/2406023?hl=en

Estimates are limited by your budget.
Sometimes, the maximum cost-per-click (CPC) bids in the graph will be shaded. Our system predicts that your budget can't accommodate all of the clicks and impressions available for your keywords for those shaded max CPC bids.
In addition to seeing a shaded section in the graph, you might also see that the line in the graph curves downward. This means that the estimated number of clicks your keywords could get are decreasing as your max CPC bid increases.
** I´am learning Adwords and find it very interesting.
** Ik ben Adwords aan het leren en vind het erg boeiend.

Re: What is the downside of cheap CPC rates?

Top Contributor
# 3
Top Contributor
Hello;
If your budget is low you cannot afford costly clicks. Work on improving your QS.
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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