New Site

High CPC?

[krakrazor]

I have a fairly new site(2 months old), and I also do CPC advertising with AdWords. My ads are well written. I am in a high CPC industry, in Yahoo, CPC's range from $1 to $0.30. In google, Right now I have my target CPC set to 0.30 max and
I am getting $0.20 CPC for postitions ranging from 10 to 20. My CTR is 1%.

Is the reasoning for such low positions my bid, my PR0, etc?

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[StupidScript]

Yep.

New and edited ads cost more and are lower in position until they prove themselves with a consistently competitive CTR.

Once the CTR gets up, position rises and CPC falls.

Keep in mind that the landing page and other factors also influence your spend and position.

[chrisuk]

Yes that is correct, new ads have no history so the initial price is higher per click than it maybe say a week down the line.

That said there are instances where the initial prices on some uncompetitive keywords with no associated ads yet are just silly but the cpc should eventually drop.

[roxyyo]

PR0 has nothing to do with it.

[roxyyo]

Google can't factor in PR because many advertisers will create custom landing pages tailored to pay-per-click offers or for split testing purposes that can't possibly have a PR anyway.

[exmoorbeast]

any idea how much the cpc drops on average over time? Or is that impossible to generalize?