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I m confused ..

11:18 am on Aug 11, 2005 (gmt 0)

5+ Year Member

When i m setting my Adwords account.
i have chosen some keywords Google has specified Max CPC as $50 so there is Avg CPC calculated and everything else.
But when i change Max CPC it do not effect proportionally on keywords ... some keywords which were little cheap go up on highest price ..
i have tried max cpc of $10,$20,$30 and i m not sure which keywords will be cheap for me to attract traffic at position #1 or 2.
I want to ask what is happening here y everything changes when i change Max CPC ..?
Y cheap keywords become costly and sometime costly become cheap ..
5:59 am on Aug 12, 2005 (gmt 0)

5+ Year Member

no one answering ... so i m more confused :s
9:37 am on Aug 12, 2005 (gmt 0)

10+ Year Member

Your posting is a little hard to understand, but if you're bidding $10, 20, or 30 a click without a lot of experience using Adwords (or very deep pockets), you could easily lose a lot of money very quickly. (Incidentally, Google's bid estimating tool is known to be quite inaccurate.)

It sounds like you're not really familiar with how to use Adwords, and you could probably benefit by reading some books about it or taking a course before setting up any campaigns or spending any money.

11:13 am on Aug 12, 2005 (gmt 0)

5+ Year Member

From where help can be takenf for setting campaign.
what is wrong with Google Estimating Tool :s ..?
11:17 am on Aug 12, 2005 (gmt 0)

10+ Year Member

Wat are you estimating, I finding it hard to understand please say 3 bullet points.If you can definetly I guess its got something to do with keyword estimator tool and your bidding price.

Kindly elaborate if you can?

11:35 am on Aug 12, 2005 (gmt 0)

5+ Year Member

Let me try again...
I m new to adwords campaign.
I have chosen 5 keywords for my campaign. suppose( a,b,c,d,e)
on Set Price Page i see Avg CPC (with MAX CPC $50 set by Google )for all 5 keywords
keywords ----- $ Avg CPC
a ----- 1
b ----- 2
c ----- 3
d ----- 4
e ----- 5

So now i can judge keyword "a" is cheap and keyword "e" is costly then all.

My Question starts here that when i change MAX CPC to $20 or $ 30 .
now cheap keyword "a" is becoming costly and costly keyword "e" is becoming cheap relatively.
keywords ----- $ Avg CPC
a ----- 5
b ----- 2
c ----- 4
d ----- 3
e ----- 1

What is happening why keywords are becoming cheap and costly ...? by changing MAX CPC ..

12:57 pm on Aug 14, 2005 (gmt 0)

10+ Year Member

Now you understand why I say the keyword tool is inaccurate, right?

Another problem is that the tool gives you a bid price that will keep your keyword at #1 position all the time (or 85% of the time, I forget). You don't want that.

Another problem is that you're bidding on keywords that cost so much money with so little experience. They are probably single-term, very competitive keywords, and I repeat, *unless you know what you're doing, you could easily lose a large amount of money in a matter of hours.*

I like Chris Carpenter's Google Cash book--it was the first and is quite good. There are others--you can find them by doing a search. You can also join the Adword Mentor forum, but they charge.

2:29 pm on Aug 14, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

What is happening why keywords are becoming cheap and costly ...? by changing MAX CPC ..

To understand this behavior, you need to understand how Max. CPC, actual cost and ad-ranking were used and calculated. To refresh your mind about these parameters, you can look at my post msg#2 at [webmasterworld.com...]

You also keep in mind that:
1. This is a dynamic system. Ad position and actual cost estimations are changing due to a change in ad pools at any given minute.

2. Actual Cost is based on a step function. As shown in the example of my post mentioned above, Ad 2 is at second position with Max $5 and actual cost of $2.01. If the max CPC for this ad is raised from $5 up to $15, there is no change in the ad position (2) and cost is still at $2.01. However, if the Max. CPC is raised over $15.01, the ad position is changed to 1 and the ad is paid at $15.01 per click. After that, the actual CPC will be the same even if the Max. CPC is raised to $100. This actual CPC for the number 1 ad will be changed if either a) its CTR change, b)any change in the ad one below or c) new ad
to the pool for either the first or secong position.

3. Actual Cost is estimated based on the rank number of ad one below. This is very important factor in how the actual cost is calculated. Once Max CPC changes, all ad positions are also changed or the ad one below is also changed. Depending on the performance of the new ad (one below), your cost per click might increase or reduce.

7:09 am on Aug 15, 2005 (gmt 0)

10+ Year Member


My First Suggestion important one,take the keywords, place them in google suggest

From the suggestions pickup 5 suggestions which make sense and bid for them.Also use exact match [keyword] to begin with.


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