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Why am I being priced out of my keyword?

Quality score 8/10 "Great" Yet each week 5 cents

         

MediaSpree

2:29 pm on Mar 9, 2009 (gmt 0)

10+ Year Member



It all stated out great. I was bidding .50 cents per click and making on average $1.00 return on investment. My quality score was and is 8/10. Then suddenly they wanted .55 cents to be on the homepage. Ok thats fine. The next week it was .60, then .65 then .70..now its 1.20 per click needless to say I am now loosing 20 cents on average. Why? My quality score is still 8/10. Pretty soon I am just going to have to shut it down and google will get nothing from me. Do they care? BTW my CTR is about 5%. How can I get it back down to 50 cents a click? Or is it over for me. Thanks

[edited by: MediaSpree at 2:30 pm (utc) on Mar. 9, 2009]

netmeg

2:32 pm on Mar 9, 2009 (gmt 0)

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



How much competition do you have?

MediaSpree

4:11 pm on Mar 9, 2009 (gmt 0)

10+ Year Member



I have average placement of 4-5th place with about 10 competitiors

netmeg

4:18 pm on Mar 9, 2009 (gmt 0)

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



Maybe your competitors are getting hit with poor quality scores and having to bid more to stay on the top page, which is driving the competitive pricing up? If your QS is still 8, it's probably not you.

MediaSpree

5:30 pm on Mar 9, 2009 (gmt 0)

10+ Year Member



Thanks for the replies netmeg. If my competitors quality scores are low and mine is high shouldn't that make my CPC go down instead of up?! For instance, in another campaign I advertise on my own domain name as a keyword because my competitors are using it as well (which I dont think shoudl be allowed , but ok). Here my CPC is only 0.04 cents where I assume theirs is much higher as I am in the #1 spot for my own domain name with a 10/10 quality and only .04 cents per click. Sigh.

MediaSpree

1:28 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



Well I shut down the adwords campaign today and am sticking with yahoo search marketing. Sorry, google.

peer_esv

4:47 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



Can anyone confirm the scenario that netmeg describes? AdwordsAdvisor?

It sounds outrageous to me that you could be punished with higher prices because of competitors having lousy QS.

MadeWillis

5:06 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



One thing I have seen is that first page bid estimates are just that....estimates. I have seen some keywords where for example I am bidding $0.50 and the first page bid estimate is $1.00. The funny thing is that my avg position is around 3. I'm already on the first page, therefore i don't need to increase my bid.

I'm still trying to figure out exaclty what is going on, but so far this is all I have.

Did you increase your bid immediately after getting the first page bid estimate? I'd be curious to see if you avg position would remain the same if you simply ignored it. May be worth trying anyways. Just keep an eye on your position.

arizonadude

5:07 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



Google is doing all the things it takes to lose business and webmasters who have supported them since the start.

I used to have a Google License plate frame, hat and shirt and wore them all the time proudly. All of them now sit in the back of my closet as Google has just become another corporation and worse yet, they think they control the Internet. I won't give them free advertising anymore nor do I recommend them to clients when asked about what search engine to use. They have taken their eye off the ball and while many will huff and puff that Google will always be the search god, times are a changing and their dominence will be eroded as it should.

As far as adwords and the stupid QS, they have decided they have enough money and don't need anymore.

Yahoo is smiling.

arieng

5:43 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



Yahoo is smiling.

Really? Even with increasing GAW costs it still outperforms Yahoo significantly. I'm sure there are quite a few others with a similar story.

OP, I seriously second the comment by MadeWillis. Have you tried bidding $0.50 and seeing where you end up? You might still make it to the first page.

2 other ideas.

First, surf the long tail. If you're using broad match for this specific term, you're probably picking up a lot of longer tail traffic. Identifying these terms and bidding on them with phrase match will almost always net down your average click cost for the same traffic.

Second, a trick I learned a while back here on WebmasterWorld (one of many ah-has from the fabulous Netmeg). Enter the same keyword three times in the same ad group with three different match types. Bid broad match low, phrase match higher, and exact match the highest. Generally, narrower match types will convert better, and the different traffic segments can each be meausured and adjusted independently of the others. NOTE: Google has since posted that they do not approve of this technique, but the system still allows it. Regardless, I've used it on our most competitive high traffic keywords that would otherwise have been abandoned.

netmeg

6:02 pm on Mar 10, 2009 (gmt 0)

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



It's not my scenario, just something that occurred to me to wonder if it could happen. Without knowing any specifics, I can't give any kind of educated guess as to what's going on, and I've never seen it across any of my accounts, if his QS really is still at 8/10. Except when the competition heats up. That I see a lot.

arizonadude

8:33 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



Really? Even with increasing GAW costs it still outperforms Yahoo significantly.

At 10.00 per click on Google, and .14 on Yahoo, I seriously doubt that.

shorebreak

8:33 pm on Mar 10, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



@arizonadude:

I used to have a Google License plate frame, hat and shirt and wore them all the time proudly. All of them now sit in the back of my closet as Google has just become another corporation and worse yet, they think they control the Internet.

My company has plenty of chatzki if you need some. #:^)

MadeWillis

9:04 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



At 10.00 per click on Google, and .14 on Yahoo, I seriously doubt that.

There is a reason it's only .14 per click.

arizonadude

9:42 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



For the terms I'm bidding on, I've noticed some terms have a better ROI on Yahoo, than they do on Adwords and of course the other way around. It really depends on your market.

The 10.00 versus .14 is to show how stupid the QS is. Some of them were 8 & 9 and then overnight go to 10.00. Right, like the bad quality fairy crept in over night and messed with my ads.

Yes, I have affiliate links on my sites. If you stripped out all the affialite links, the site would stand on their own with no problem and be a great source of information and in fact they show up very well in the organic search so I'm already getting free traffic.

The problem is, I don't spend my time building great content rich sites about subjects I'm familiar with just to share them with the world for free, I do it to earn money and it seems that Google really dislikes the affiliate business model even though they own a affiliate network.

I also realize that Google could firebomb some peoples houses and the next day they would be on line talking about how they deserved it and Google is God. I get it, I used to be one of them.

I've made adjustments to play in the Googles big sand box and I've been playing in it since 99 before adwords even existed.

I just get frustrated with Google's alturistic look at the word and what they percieve as quality. The spam in adwords is not near as bad as the existing spam in the organic index.

As long as an affialite marketer creates good solid sites and then wants to monetize them with adwords in addition to the free searches, I just don't get what Google's problem with that is.

Of course, I don't have a PHD so maybe that's my problem.

arizonadude

11:41 pm on Mar 10, 2009 (gmt 0)

10+ Year Member



And to add insult to injury, on numerous of the adgroups that got 10.00 bids, quite a few closely related words in the same adgroup remain at 9 or 10 QS with .04 bids. The only difference is the ones that remained OK had no impressions or clicks and the ones that got slapped had CTRs above 10%.

That is directly opposite of the QS is supposed to be all about.

So, my interpetation of that is Google don't have a clue anymore.

HRoth

12:48 pm on Mar 11, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Well, I DO have a PHD, and it doesn't help with understanding the capriciousness of AdWords.:) The QS thing is like some moody teenager is running it. I have pages that have rated poor QS when they were all about the keyphrase. Now when it says "Your QS is low; you need to change your page or raise your bid," I just delete that keyword. It just doesn't make a lick of sense.

Yoshimi

1:01 pm on Mar 11, 2009 (gmt 0)

10+ Year Member



nor do I recommend them to clients when asked about what search engine to use.

Isn't this doing clients a disservice, if their sales volume would be higher through using Google. I know in my niche the returns from Google are 10-20 times that of Yahoo, if someone tried to suggest that we did without Google they would be reducing our sales volume by 90%

MadeWillis

5:12 pm on Mar 11, 2009 (gmt 0)

10+ Year Member



I completely agree with Yoshimi. You are doing your clients a disservice simply because you hold a grudge against Google for whatever reason. If someone were to tell me not to advetise in Google right now, I would laugh in their face. There are likely some situations/niches where this may be true, but you would have to prove it to me, not just tell me. However after saying this, I do still think Google has too much power.

Get it where and when the getting is good:)

[edited by: MadeWillis at 5:13 pm (utc) on Mar. 11, 2009]

arizonadude

10:17 pm on Mar 11, 2009 (gmt 0)

10+ Year Member



You are doing your clients a disservice simply because you hold a grudge against Google for whatever reason.

In my opinion, I'm doing them a favor.

Yahoo is every bit as good as Google anymore.

Years ago, you could do a search on Google about stuff and actually get the first page of results all about that thing your looking for without ever seeing a commerce site.

Now, all you get is commerce sites which is just like Yahoo.

I owe Google nothing. They have used me and abused my loyalty so to heck with them.

Yoshimi

8:38 am on Mar 12, 2009 (gmt 0)

10+ Year Member



It's not about how good they are as a search engine though, it's about how much business your clients can drive through those search engines. No matter which way you turn it Google get's a lot more traffic than yahoo, so unless your conversion rate on yahoo is 10 times that of Google (which you can't know until you try advertising on both) you are never going to make as many sales through Yahoo.

It's a bit like saying "don't open a shop on the high street where it will get thousands of passers by, open it on this side street instead, it will get fewer passers by but those who do go down there will be impressed at how nice the street looks"