PPC Review – Low Keyword Competition Does Not Equal Cheap Clicks

posted by Clive on August 27, 2009

{{adam}} I was reading through some Google AdWords quality score guidelines and posts on the AdWords blog and thought I would dispel a rather common misconception in PPC marketing.

Part of a good PPC managers job is to continually look for “long tail” terms – or key phrases that generate cheaper clicks, but high conversion rates. Often, these terms don’t have a lot of advertiser competition and thus, one would conclude that the average cost per click is also very low. Unfortunately, in Google’s AdWords system, it isn’t that simple and the average CPC is not only determined by how many advertisers are on the page.

From the Google AdWords support site:

Remember that competition is only one of the variables that determines your actual CPC. The price you pay for a click is also determined by your relative keyword Quality Score for that query. If your keyword has a low Quality Score relative to the other ads on that page, you may find that your actual CPC is close to your maximum CPC, even though there is low competition for that keyword. Keep in mind, though, that you’ll never be charged more than your maximum CPC for a click, no matter how low your Quality Score.

For some excellent tips on quality score management and a really great comprehensive guide, read through this excellent compliation of PPC quality score info.

Also, take the time to watch Google’s excellent video explaining their auction model and how the various factors affect ad position.

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Comments (27 Comments)

CompareBookings.com
August 29, 2009

The best thing about it is no matter what your budget , you can display your ads on Google and advertising network are really good………
hanah
August 30, 2009

Conduct Keyword Research
“Keyword research is the beginning and end game for a well optimized site,” Anthony Howard wrote in the forum discussion. Brainstorm ideas and create a list of action-oriented keywords appealing to your target audience. Offer the most relevant content for your buyer persona.
Use Keyword Discovery Resources
The more tools for keyword suggestions you use, the richer your set of ideas will be. HubSpot’s Keyword Grader is our favorite, but you could also try Wordtracker and KeywordDiscovery. You can use SemRush to explore your competitors’ strategy and monitor a word’s average volume of searches
Pick the Low-Hanging Fruit
One way to do this is to target the people who are already searching for you. There is somebody out there who is looking up your brand online or is actively interested in your industry- or location-specific niche.
auto club
sohbet
August 30, 2009

thats good post
Reverse Cell Phones
September 4, 2009

I have read the best campaign starts out with the short popular terms to get the quality score and then expand with longer terms.
health
September 5, 2009

That I know for sure. I love them.
Mac Ozeti
September 5, 2009

Thanks My Friend..
Angeline @ marcus evans scam
September 8, 2009

Yes.. But how to make it Keyword rich? Richness of the content and keyword is the big issue that we face.
Angeline @ marcus evans scam
Wine of Month Club
September 8, 2009

Thanks as always. It makes sense that less competitive keywords would be cheaper, but G can completely control the market right now….in that way it would be good for Bing to give them some real competition….although I’m not hopeful on that front.
Chat
September 10, 2009

thats good post. Thank you
Steven Jackson
September 11, 2009

It is an excellent and very informative post.I was aware that if the keyword is less competative then the valur per click will definitely going to be less.Thanks for sharing this.
Margaret
September 11, 2009

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Margaret

http://businesseshome.net
Golf Blog
September 13, 2009

I haven’t seen the video before! A great addition.. this helps to figure out how Google is actually doing things.. although I’m pretty sure they’ll never let us know the real formula!
ligtv izle
September 14, 2009

Tehank you. Perfect
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September 24, 2009

Ð¡Ð°Ð¹Ñ‚ Ð´Ð»Ñ Ð¶ÐµÐ½Ñ‰Ð¸Ð½. Ð’ÑÐµ Ð¾ Ð¶ÐµÐ½Ñ‰Ð¸Ð½Ð°Ñ…
Maverick Money Makers Review
October 5, 2009

Adwords is not that easy as most of the people think. Bidding game become difficult when big companies enter which can afford even dollars for few clicks. But anyways the article was quite informative, specially for newbies.
Igor
October 14, 2009

That’s interesting, thanx
Carpet Cleaning Edinburgh
October 14, 2009

Great post! thanks for sharing.
Tulsa Homes
October 16, 2009

I can tell you after having spent well over 500k over the past 5 years on ppc. It is a lot like a crap shoot unless you stay on top of your campaigns.

There are other more cost effective ways to drive traffic to your site, although I will tell you when it comes to PPC IMHO Google is the king!
24 Hour New York Lock & Key
October 19, 2009

PPC works, it takes a lot of effort, time and money to find out the most profitable niches but it is worth it in the end.
Leaky Gut Syndrome
November 17, 2009

If people are paying over 100k a year in PPCs then I wonder how much they are actually making in profit.
SUCCESS COACH
November 19, 2009

PPC is one of the in demand online job now….
When you are working on a pay per click basis its like earning money online is as easy as 1,2,3.
Terry@Charlotte Real Estate
December 1, 2009

love ppc, love Google, and the people who help me understand it. thanks
GOLF CHIANGMAI
February 3, 2010

A very good idea. Will try to take you like to learn more. Thanks for sharing good things to come.
sohbet
February 21, 2010

thanks you admin
Car Audio Stereo
February 24, 2010

It is an interesting ppc post. Thanks for sharing nice things about it. Keep it up!
Church CMS
February 24, 2010

Great review and video. I just started my PPC campaign for my new website. I will surely deliver your points there so that i can benefit and earn more revenue. Thanks for sharing
SEO Pakistan
March 5, 2010

Hmmm I have read the best campaign starts out with the short popular terms to get the quality score and then expand with longer terms.

Spark Internet Marketing

PPC Review – Low Keyword Competition Does Not Equal Cheap Clicks

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