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Oh, also, I was wondering about something else that might be causing this. I have read about recent Google changes which judges your CPC and Ad Rank on your Ads CTR, but does it judge your Ads CTR on a whole(all the stats of your keywords combined?) Or does it go by your keywords AD CTR? which would be the CTR I am seeing under my stats since I only have one ad. I have a few high volume keywords in this group that get thousands of impressions but have a CTR rate of 1.1 which drags down the overall averages in my campaign.
One question though: Why is your MaxCPC 4$? If you want to pay less, why don't you keep it at 0.15?
Especially if your niche is not very crowded.
But sincerely, I doubt that for a KW that brings 600 clicks per day there is only your ad...
What I recommend you to do is stay a day or two and look at every click - how much it costs. You probably have hundreds of 0.05, but you could have some of 3$....
First, if you're happy with $0.05, don't welcome $0.06, consider $0.07 too high, and $0.11 is too costy, there's no way you should be bidding $4. Lower your bid to $0.05 or $0.06. You won't always be #1, but you won't pay more than you're comfortable with either.
What you're probably seeing is a competitor coming in, trying to get the #1 spot, then running out of budget or getting the keyword disabled due to poor CTR. If you're getting 10% CTR and a new advertiser gets a 2% CTR and bids $0.50, you'll pay $0.11 to retain the #1 spot. They may actually only pay $0.05 since the #2 bidder's acual CPC is based on the #3 bidder's Max CPC and both of their CTRs. If #2 bids $19.50 with a 2% CTR, you'll have to pay $3.90 per click to retain the #1 spot. They may still pay as little as $0.05. At 600 clicks a day, $3.90 per click will cost you well over $2000. A savvy competitor could inflict some major pain on you thanks to your massive overbid.
Some points to remember:
1) You don't need a big bid to get the #1 spot. I have hundreds of keywords with a $0.05 bid and a #1 position. A good CTR works in your favor.
2) Don't bid more than you're willing to pay.
Doctor: "Well, don't do that."
ucdawg12: "It costs me too much money when I bid $4 CPC and $10,000 daily budget."
Webmaster World advice: "Well, don't do that."
My advice: Change your max CPC to $.05 and report back to us in two weeks.
If $0.07 per click is high, then a $4.00 max CPC should never be put in there. If you can't/don't want to pay more than a certain CPC, then don't set the max CPC any higher than that.
Rest assured that if the max CPC is set at $4.00 and the daily budget is set to $10,000 Google will deliver all the traffic it can and if for some reason there is a surge in traffic on those keywords and the CPC rises up to $4.00, there will be a credit card bill for $10,000 one day, assuming that the credit card does not max out before that.
If all the traffic in the world at $0.05 or $0.07 will be profitable then you might consider a high daily budget combined with a max CPC of $0.06 or so.
I'm sorry to appear unsympathetic but you were clearly warned about your overbidding and yet a month later you still had not changed it.
Add to that a $10,000 daily budget when your spend is only $50 a day! what were you thinking.
I'd say you should try and discuss this with Google, maybe they will laugh enough to take pity on you and offer a refund.
Seriously, you could alert them to the fact that their poor estimates forced you to a high daily budget if you can prove it, maybe they will look at a refund rather than try to prove their estimates work well (they would find plenty of evidence that their estimates are badly out on many campaigns).
Good luck & listen to people here in the future.
Usually he probably has a 0.05 bid, and is on 2nd place. Then he puts a bid of 1$ and goes back - you are still first. Then, 2$, 3$....you are still first. Then he maybe says: "i'll tech this guy a lesson!" And he puts his MaxCPC at 3$ and clicks your ad. At the beginning - twice a day. Nothing. And now, he's going for "industrial" - 100-200-400 clicks a day.
Does it look possible? and familiar?
I still do not understand why can't you just bid 0.1 and see what happens?
just can't understand.