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difference between max cpc and average cpc?

beginner...take it easy on me

         

oldpro

9:05 pm on Jun 22, 2005 (gmt 0)

10+ Year Member



I am considering adwords and trying to do all my homework before I start.

Situation...

Website is 12 years old, manufacture a product and sell it online. Repectable rankings on all SE's (top 10 to 15 for money kw). Given the fact that google takes so much time and effort to maintain a good ranking, I have decided to go with adwords for google and concentrate seo for MSN and Yahoo. It's easy to optimize for msn and yahoo, but when I do it hurts my google ranking.

My question is...

For my money kw (taking the "rifle" approach, don't think I will need several kw's to start), the google kw tool shows that a max cpc of $1.50 will actually cost an average of 1.02 with an average position of 2.8. Nowhere can I find an explaination in google help of the definition of max cpc and average cpc. Can someone please explain this to me?

dmjarvis

9:30 pm on Jun 22, 2005 (gmt 0)

10+ Year Member



You can find definitions in the Google Adwords Gloosary, found at:

[adwords.google.co.uk...]

and

[adwords.google.co.uk...]

Google will always adjust your actual cpc down so that it is only 0.01 more than the next highest bid. So if you have set a max cpc at £1, and there are already adverts being bid at £1.50 and £0.50, then you will be positioned 2nd and should pay £0.51. Of course, this ignores CTR. A good CTR could mean you place higher than your max cpc would normally lead you to expect - but that's another story!

Good luck!