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Variations in cpc. Does this sound correct?

     
3:23 pm on Mar 19, 2006 (gmt 0)

Junior Member

10+ Year Member

joined:Oct 12, 2005
posts:100
votes: 0


If actual cpc is the max bid below you divided by your quality score +.01, then would increasing your max cpc increase you actual cpc even if you outrank the ad below you at both?

say I outrank an ad at max cpc of .05 and the poor performing ads max cpc is .5. So I outrank him, and I divide his max cpc by my quality score and that gives a value. Now, even if that value is higher than .05 cents, my max is .05 so I pay only .05. Now lets say my max cpc is .1. Because I still outrank him, would my actual cpc increase if in fact his max cpc/my quality score is greater than .05?

Am I getting this right? Are we seeing different prices solely based on max cpc, regardless if other factors remain the same?

4:18 pm on Mar 19, 2006 (gmt 0)

Senior Member

joined:Jan 30, 2004
posts:1035
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"Are we seeing different prices solely based on max cpc, regardless if other factors remain the same?"

There is absolutely no figuring out the dramatic CPC variations from day to day on Adwords. My number of competitors' and their position rarely fluctuates, yet
prices are like a roller coaster.

For example:
Monday will be $5.85
Tuesday will be $6.84
Wednesday will be $5.91
Thursday will be $5.26
Friday will be $7.16

The only thing that IS consistent is that the prices are going up and that the price you are charged has more and more emphasis on what you set as your max CPC. Google's getting greedy in my opinion - then again their stock is down what 30% in the last 2 months? The easiest way for them to make that up is to charge us as much as we say we'll pay regardless if there is 5, 10 or 15 competitors on a keyword.