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Google Adwords on the Phone About Keyword Costs

Keywords Cost Goes through the Roof with Relevant Ads

         

metakomm

12:10 am on Dec 13, 2005 (gmt 0)

10+ Year Member



I read all the other threads about Google and their pricing policy...Well, I called Google to ask them about some specific keywords...

For example, there is a keyword that has a max CPC of .29. Over the lifetime of that keyword (almost a year), I have a 4.7% CTR. Over the past 30 days, the CTR is 4.3%, which, the Google Rep confirmed was way above average.

I performed so well on the keyword, I only paid .12, less than half of the max CPC.

Today, the keyword is inactive until I pay $5/click!

So, google's own pricing system said I was so relevant that they dropped the price on the ad, and then the next day they decide to try and charge me $5/click.

Another example is I have a keyword that has a max CPC of .10, I have a lifetime 8.3% CTR, and lifetime only paid .04/click, but now they want me to up the bid to .30.

Why give me a discount and then charge me 3x more later?

Anyway, the girl said she is baffled by some of these $5 and $10 keywords that have performed above average. She says she will consult a tech and call me back. I will be interested to see what she has to say...

webpublisher

1:32 am on Dec 13, 2005 (gmt 0)

10+ Year Member



I believe there are a lot of Adwords support personnel contacting their own tech department at the moment..confused at what has happened.

I'm sure they will have to do some kind of reversal on this filter update as the results are just plain wrong.

metakomm

1:52 am on Dec 13, 2005 (gmt 0)

10+ Year Member



Here is something that confuses me also, if anyone knows the answer, please let me know!

Suppose you now have a keyword that is inactive until you set the bid to $5.

Let's say that keyword only brings up only ONE or TWO paid ads.

Just to throw a number out there, suppose the ads that are up there only pay .50/click max or something like that.

Will I pay .51 cents, or will Google gouge me for closer to the $5 amount?

I have noticed a handful of these $5 and $10 clicks only have a FEW ads running...

I'm almost curious to allow up to $5/click to see how google will charge me.

I would think it would be unfair for me to get the 3rd ad slot (with no one else bidding - last place) for more than what position 1 and position 2 pay. However, I can understand if there are 20 other ads that are simply more relevant than what I have displayed with my CTR. Then I can see why I should have to pay high prices to play.

jim2003

2:05 am on Dec 13, 2005 (gmt 0)

10+ Year Member



If you are required to pay a min. of $5/click to be reactiviated, then you will be charged $5/click regardless of what other bids exist or don't exist.

webpublisher

2:26 am on Dec 13, 2005 (gmt 0)

10+ Year Member



Yep jim2003 is dead right

I carried out a test today.

I had active 0.05 keywords go inactive and needed to bid $1.00 to activate them.

There were about 5 ads showing for these keywords.

I activated the keywords and revisited a hour later.

There were 5 clicks for a cost of $5!

A few days ago this would have cost me $0.25

My ad was in the number one position paying probably 1000% more than 2nd and 3rd.

I'm hoping I will find out the reason for this tomorrow.

toddb

3:41 am on Dec 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Yep, you pay the minimum to activate. I am getting stung on one for $1. I thought maybe after 1000 impressions it would drop as this makes no sense but alas. I am the only ad and I need to quit being on this word.

kooky

11:50 am on Dec 13, 2005 (gmt 0)

10+ Year Member



This is outrageous! I never knew this was the case, I always presumed the new minimum bid was simply to have your ad shown. How can they take $1 per click when nothing else is even showing - come on that is just plain wrong, and against their principles.

Leosghost

12:33 pm on Dec 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



This is outrageous! I never knew this was the case, I always presumed the new minimum bid was simply to have your ad shown. How can they take $1 per click when nothing else is even showing - come on that is just plain wrong, and against their principles.

They are a company responsible to their shareholders ( although this would be the same scenario if they were wholly privately owned ) "their principles"?..

( even if you have somehow taken the old "do no evil" to mean they are philanthropic ..a la Mother Theresa ..or the Red Cross )..

Their principles are to make as much profit by chargeing as high as the market will bear for their "services" ..thus minimum is set with regard to how much they can gouge you for ..how much do you need the word ..how much is a glass of water worth to a thirsty man in the desert etc ..

Your choice is to walk away ..or wait for the spin that your reps will come back to you with to try to disguise the underlying reason ..

Why the discount before the price hike?

How do crack dealers get you hooked ..virtually give it away and then when you can't do without it .. make the price as high as you can find the money to pay it ..

The principal is as old as our species .. mostly it's manifestations are seen on the street corners ..sometimes their naked face shows up in the boardrooms ..

No point being outraged ..just the way it is ..welcome to the world :)

jim2003

1:04 pm on Dec 13, 2005 (gmt 0)

10+ Year Member



Kooky, I am not defending the practice of charging the minimum per click in all circumstances, but in some circumstances, I believe that the reason Google is charging that much is to be compensated for the impressions it is providing for "free" to a low CTR term. For example according to #*$!, the second most popular keyword currently is "jessica simpson". One of the ads appearing on google in response to that phrase is an any for free sony laptops. Clearly that is not a relevent ad. That advertisers will probably receive thousands and thousands of impressions for free, before there is a single click.

Personally, I think that Google would be fairer if it charged an alternative minimum charge per impression, as a way to activate inactive keywords, rather than the silly $5 and $10 charge for clicks for low commercial value keywords.

metakomm

1:55 pm on Dec 13, 2005 (gmt 0)

10+ Year Member



Could this be a slick way of google re-setting the cost for keywords?

harry_wales

2:03 pm on Dec 13, 2005 (gmt 0)

10+ Year Member



I found one of my keywords inactive until I bid £25.00 (UK pounds sterling).

At that price I was quite prepared to let it go rather than pay that sort of money. However, 2 days later I found that the minimum bid for that word had changed from $25.00 to £0.25 - so I had assumed that it was just a glitch with Google's servers putting the decimal point in the wrong place. I set my bid up to £0.40 and it has been fine ever since.

metakomm

2:47 pm on Dec 13, 2005 (gmt 0)

10+ Year Member



Got an email back from Google. Basically they said it was the whole thing mentioned in the other thread. Even though I have high CTR, keywords that I have chosen are not on the landing page or in the ad text.

The only thing is, some of the keywords would not really fit in with the landing page. For example, one keyword I use is "widgets com" - take not of the "com" in the keyword phrase. The person is obviously searching for "widgets com", where my page will take them to. But it doesn't really read cleanly if I now include "widgets com" in my landing page.

This probably belongs in the other thread...Oh well, I will rant there...lol

netmeg

4:23 pm on Dec 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



My experience is exactly the opposite, as I have mentioned in other items. I allowed the minimums of anywhere form $5 to $10, but was never charged anywhere near those prices for actual clicks - in one case, was only charged four cents for a word with an eight dollar minimum. And after a few days, the minimums could be brought down to a reasonable rate.

ronburk

5:30 pm on Dec 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



But it doesn't really read cleanly if I now include "widgets com" in my landing page.

Couldn't parse that one. If your domain name is "widgets.com", how could it be inconvenient to have "widgets.com" appear on a landing page? Or are you saying you don't think Google parses "widgets.com" as two words?

metakomm

5:41 pm on Dec 13, 2005 (gmt 0)

10+ Year Member



@ ronburk

Here is some more info...

I have a merchant that I promote...Their company is greenfunwidgets.com. I have banners and text links that lead to greenfunwidgets.com free shipping specials and discounts.

Now, one of my keywords is a variation of greenfunwidgets.com. It is "green widgets com" the word "fun" is removed. And there is no such thing as greenwidgets.com, it is just a the searchers tend to drop a portion of the domain name. I provide an ad that gets them to where they want to go, but yet, I am still penalized. So how am I supposed to optimize for "green widgets com" without making the landing page text look awkward?

Don't know if this clears things up...lol

vphoner

4:18 am on Dec 19, 2005 (gmt 0)

10+ Year Member Top Contributors Of The Month



I really hate this new policy of these outrageous click prices. The words they are on are many time unoccupied and google is losing on them, since no one will pay their prices.

I did find that if you delete the word that had the outrageous price and let it "rest" for a couple of days or a week, it gets reasonable again. No idea why. Anyone come up with any tricks to get this to work?

shasta

7:42 am on Dec 19, 2005 (gmt 0)



It really looks that things have changed since Google has factored the landing page as part of the minimum cpc charge for a given keyword. I first noticed a huge drop in traffic last week, went into my adwords campaign and randomly checked some of my keywords (ones that used to bring in huge $$ in sales --with approx 6% ctr)and they have been disabled. >> Now the part that confused me when I clicked on the keyword was the fact I was given a choice; increase the bid to what they wanted to immediatley make the keyword live OR optomize the landing page....but Im confused how do i optomize the landing page for a particular keyword and resume traffic for it without first paying the new minimum amount? So I phoned Google and asked them this and as usual, the rep had no clue, (guess they never sent out the email to their phone staff on this issue) so I was told they'd get back to me....but I havent heard anything back yet...... Sorry for the long post...can anyone shed some more light on this?

webpublisher

1:42 pm on Dec 19, 2005 (gmt 0)

10+ Year Member



I believe there are a lot people waiting for a reply from Adwords tech support. Join the queue!

econman

2:01 pm on Dec 19, 2005 (gmt 0)

10+ Year Member



You should be able to optimize using some common sense and logic. Create a new landing page in which the overall emphasis and content are focused on the interests of searchers using that particular key word or phrase. Later, you can test variations to improve the conversion rate.

webpublisher

2:13 pm on Dec 19, 2005 (gmt 0)

10+ Year Member



econman - that is what I already have