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why minimum $ for keyword

         

benevolent001

8:50 am on Feb 19, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Hi

Can someone of your explain why google asks to bid minimum for some keywords even when there is no advertiser competition for those?

Can you please tell why its so?

just while starting the campaign it says minimum for this keyword , if there is some competition then this makes sense but for unique keywords this shouldnt be the case even minimum bid of $.01 should work

What are your views? How you deal with this

thanks

Green_Grass

8:58 am on Feb 19, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



[webmasterworld.com...]

Enjoy...

AdWordsAdvisor

5:04 pm on Feb 20, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Can someone of your explain why google asks to bid minimum for some keywords even when there is no advertiser competition for those?

The answer to this question is that an advertisers minimum bid for a keyword is simply not related to the number of competitors one has for the keyword. Instead, minimum bid is related to the Quality Score of the keyword.

This has been the case since the launch of quality-based bidding back in August of 2005.

There was an Inside AdWords blog post on January 31st, 2006 that covered this question pretty well. Since I can't link to the blog, I'll quote from the post which was entitled "A common AdWords misconception explained...". The original post had three of four links to useful information - so it might be worth taking a look for it. Here's the post minus links:

One great thing about having a large audience of AdWords advertisers is that it makes this blog an ideal place to clear up things which might be called common AdWords misconceptions. Take, for example, the misconception exemplified by the question below -- paraphrased from a post in the AdWords Help forum:

I advertise a niche product, and I'm the only advertiser on many of my keywords. I thought I could bid the minimum CPC of $0.01 on those keywords, and have my ad show. Yet, my minimum bid is much higher. What's up with that?

Good question. Let's start by first defining what minimum bid really means:

The minimum bid, also known as the minimum CPC, is the least that one can pay to have an ad appear for a particular keyword in a particular account. It is very important to know, however, that one's minimum bid is entirely unrelated to how many other advertisers are using the same keyword. Instead, since August of 2005, the minimum bid has been quality based. To put it simply, the higher the Quality Score of a keyword, the lower one's minimum bid will be for that keyword.

So, very low minimum bids are earned by creating highly relevant ad text and keywords that get outstanding Quality Scores. And only the most relevant keyword and ad text combinations will earn a minimum bid of $0.01 (or its equivalent in other currencies).

It's worth noting that every keyword has a minimum bid that is unique to how successfully that word has been used in an advertiser's particular account. So the minimum bid for the keyword 'Kansas City BBQ sauce' will be different in your account than in your next door neighbor's account, who happens to be using the same keyword.

How can you lower your minimum bid? The short answer is to improve your Quality Score by optimizing your ads.

AWA

Mtlinfo

5:41 pm on Feb 20, 2007 (gmt 0)

10+ Year Member



Thanks AWA, you just answered the same question I was asking on the board.

So what you are telling us is that we need SEO skills not only for free results but also for paid ads too!

Not that I mind because I was an SEO a few years ago but that sucks for most people placing ads who don't have these skills.

I can't believe I have to dig in my backup files to install GRkda or WebPosition Gold again :-)

Hehe those were good times (1997-2001) or do we have to work the 2007 way which is to have a ton of backlinks and high PR for each landing page?

Can someone here help me out and tell me what satisfies Adwords QS adbots?

Is it tons of keywords, RSS fees, pagerank or just having the keywords used in the search and place them in the title and header and see the CPC drop to 1 cent?

Thanks,

Rick

momotan

6:49 pm on Feb 20, 2007 (gmt 0)

10+ Year Member



Good luck, Google will never tell you. They have no intention of making anything clear. The more vague, the more money they make. You just have to experiment (and waste money) until you hit the combo that is right for you. It has been shown again and again that two sites with exactly the same keywords, bids, daily budget, ads copy, landing pages and even domain name (one on .com, the other .net) will get two totally different minimum prices.

Mtlinfo

7:39 pm on Feb 20, 2007 (gmt 0)

10+ Year Member



Hmm, interesting point.

Did anyone try changing their landing (doorway) pages and hit reload to see if the cost per click went down?

Because at this point, that's instant results for us SEOs and not have to wait 6 weeks/months to know that our optimization job worked. That was the main reason why I left this SEO biz in the first place.

You know, try 1 keyword in the title reload ($0.55 CPC) then try 2 keywords in the title reload ($0.47 CPC), etc...

Now THAT I would love to do...if it works of course. I guess it can since Adwords tell us to go modify our landing page if you want lower CPC...right AWA?

Rick

P.s.: You know what could be cool with this QS thing if it works,is that it could even be the ultimate tool for SEOs to know what Google loves in a page which we could then use in the optimization of free listings pages too hehe. AWA, don't read this ok ;-)