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Average CPC Bid Discrepancy

6:50 am on Jun 3, 2010 (gmt 0)

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Hi all

I am just creating my first ever Adwords ad campaign. I looked through the older interface for keywords ( [adwords.google.com...] ) and got a good database of keywords that had an average estimated CPC of just $0.05.

However, when I add these keywords to my campaign keywords list, there are several keywords where the 'Status' is shown as "Below first page bid. First page bid estimate:$X.XX".

This is confusing. Should I leave it as is so that my default CPC is taken or do I remove these keywords? Why is this discrepancy happening?


//Edit : Can I even trust these numbers? There was one keyword that said the first page bid estimate was $0.20. I clicked to edit my bid for the keyword. Once done, the 'Status' now changes to tell me that the first page bid estimate is $0.55! Weird.
9:10 pm on June 3, 2010 (gmt 0)

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The first page bid estimate seems to be a suggestion based on quality scores.

I generally let my bids set for a day(or 2) to determine if they are actually getting impressions, and at what position at the current bids. As long as the quality score >5

When I have a quality score of 7/10, I've seen first page bid estimates at $2.00 vs. my $0.05 bid, and my ads are actually displaying in the #1 spot with no competition.

I guess it's better than when "below minimum bid" blocked ads from running, and I kept shutting down $1000s of campaigns.
4:59 am on June 4, 2010 (gmt 0)

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Aah, Based on quality score, I see. It's interesting how Google always puts in a mystery factor in all its calculations - quality score for Adwords, Smartpricing for Adsense. So, people like me will forever stay confused about the money we spend or receive.

Thanks PPC_Newbie..