Google keywords prices

changes daily?

[Weblamer]

The price on the per-ckick keywords of my google adwords seems to change on a daily basis. What factors decided how much a particular adword costs?

[vibgyor79]

Google says keyword costs depend on their "market value" and "performance history".I'm guessing here, but I think whenever the number of searches for a particular keyword increases, so does the cost-per-click.

Are you sure your keyword CPC is changing on a daily basis? what happens to your ads when you are paying $0.50 cents today and its value goes up to $0.55 tomorrow?

Ashwin

[deltakits]

If you are talking about Adwords Select, price is determined by Click through rate as well as maximum bid. The higher your click through rate is, the lower you can pay and still maintain your position. So, for example (ratio is most assuredly off), if someone with a 5% ctr bids $1, someone with a 1% ctr would have to bid $5.01 to rank higher than them. Make sense?

[Weblamer]

Yes, they change on a daily bases, sometimes as much as 50 cents a click.

Adwords has a thing set up where you put in the maximum amount your willing to bid on a keyword. Thus if it goes over that amount, i wont get charged and my ad wont pop up.

Still, i wish there was some direct equation that lets you know howmuch a keyword is from moment to moment instead of this 'avarage price' stuff.

[steveb]

Are you talking about how much you are CHARGED or how much a maximum BID is?

I would guess you are looking at your ad words select login page where it shows the impressions, clicks and cost per click, right?

If so, those price numbers jump around a LOT based on where your clicks are coming from. For instance, a click from France might cost .22 while one from the USA might cost .84.

This is a relatively new development with Ad Words Select, maybe two weeks old. My cost per click had always been .88 or .89 but now the average cost per click per day varies between .32 and .64.

Go in and try to change your maximum bid below what the initial screen tells you... you will get another screen saying something like: "by bidding this low you will not be getting any clicks from Google US customers but will show in search results in other territories or with some of our partners"... some junk like that.

The point is, the minimum bid for US clicks is now much higher than the minimum bid for the rest of the world.

[steveb]

Instead of:

"Go in and try to change your maximum bid below what the initial screen tells you.."

I meant:

"Go in and try to change your maximum bid below what the initial screen tells you is the minimum allowed..."

[webdiversity]

Part of the reason they have these minimum bids is because of the old legacy adwords advertisers who are paying on a CPM basis. When they bought their ads back in the good old days the CPM was much higher than it might be now. It would be unfair to them if they were undercut.

The more people like your ad on Adwords Select the cheaper it becomes. Google are trying to balance the pure search aspect with the paid for, it's only right that the popular ads pay less in the same way that the higher up the unpaid lists you are the more traffic you will get.

Once you have CTR above 2% you will see the cost per click come down quite a lot.

I'd say the prices change much more frequently than daily, but it's difficult to tell when you get an average figure.