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How Fast Does Avg. CPC Drop If the CTR is "High"?

         

bigdealioo

12:25 am on Dec 22, 2006 (gmt 0)

10+ Year Member



How Fast Does Avg. CPC Drop If the CTR is "High"?

poster_boy

8:26 am on Dec 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



How fast is "fast"? How high is "high"?

Subjective questions of this nature won't lead to useful replies, I'm afraid...

Green_Grass

8:32 am on Dec 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



How do YOU judge CTR is high? Certian Keywords may be historically associated with high CTR , so relatively speaking you may be no better or worse.

CTR also depends upon ad position so relative values may again be important.

Well anyway, if you did get a high CTR, there is no guarantee that your CPC will drop fast. QS depends upon may factors and CTR is only one of them.

I find my EPC drops over time slowly, a few cents at a time. It may also depend upon your budget, spending and immediate ad history.

Best way to go about decreasing CPC is working on your Landing page quality , IMHO. I have seen good results as I add outgoing links to my pages and link to a Privacy policy and contact details.

I suggest, increase relevancy to improve CPC. CTR can go up only that much.

Merry X Mas.

exmoorbeast

12:45 pm on Dec 25, 2006 (gmt 0)

10+ Year Member




The question is a little difficult to answer agreed, but the reality is that many on this board would love to know it, and probably ask themselves it every day.

Slowly that is for sure, as a percentage of the bid. I have sat there and watched us lose 0000s in a day waiting for the price to drop, and eventually it does, but it can be painfully slow, sometimes tens of thousands of impressions later, so you should factor this into your budgets. I can't put a time on it, but slowly if that helps. We do consider it an investment though, and CPC does fall over time if you maintain the same bids.

We got a great CTR on a reasonably high volume kw the other day, entered the blue space and expected the CPC to fall. So far (20k impressions) it hasn't moved at all. Nonetheless, we are certainly happy because we can now get more volume.

Hope that helps!

bigdealioo

9:19 am on Dec 26, 2006 (gmt 0)

10+ Year Member



exmoore, thanks. as for other replies.. guys let's not nitpick and keep the discussion on a fairly high level. "High" CTR means that G thinks it's "high" - which means it's high relative to historical CTR of this keyword, relative to competitors' CTR on this keyword, and of course taking into account your ad's rank position.

exmoorbeast

10:45 am on Dec 26, 2006 (gmt 0)

10+ Year Member



You are welcome. That kw still hasn't dropped and our Max CPC = Actual CPC. So say we bid 30 cents - we are paying 30. I guess that must mean 30 is the price we will always pay then, but I will keep you posted.

Funny, I was talking to a friend last night that basically couldn't keep his ad OFF the top blue spot. He said no matter ho much he dropped the bid, it just kept sticking there, and it was relatively competitive too, maybe sometimes people just don't want that top spot?

vphoner

12:39 am on Dec 27, 2006 (gmt 0)

10+ Year Member Top Contributors Of The Month



I had a situation where I had high CTR, and it does take a while to drop. Before the quality score business started, I got my price down well below what it is now. Now the lowest I can go is .10, so I checked to see what the minimum bid was in my adgroup for that word. And it was .10 cents. Thats why I can't go lower. I did an experiment and went with another web site, and the minimum click for that one was .05 for the same word! That shows that google is monkeying around with the minimum bid. I wish there was a way you could know what is going on with QS so you could change it. And to know what the minimum bid is if you have a perfect QS so you know where you stand.