Look at AWA's indication of the sample CPCs in message 11 of that post ... do those seem correct? I don't understand why the CPCs aren't one cent above the next competitors highest bid. (My understanding is that they should be .71, .51, .11, .05 instead of the indicated: .47, .26, .11, .05)
What am I missing?
do those seem correct?
Yes, they're.
What am I missing?
Yes, you misunderstood the AdWords concept. This is AdWords not Overture. You believe that the CPCs are one cent above the next competitors highest bid. They're not. It's based on the rank number (Max. CPC x CTR) not the highest bid. You should use the rank number is 0.01 above the next competitors highest rank number.
So: your Actual Cost = [your next highest Rank number+0.01] over [your CTR]
So it appears that increasing the click thru rate can really increase your ROI. In the example, if A increases his CTR by 1%, he would pay only .35 for the top spot, instead of .47
Interesting stuff ...
you really know this topic.
Just a couple of months ahead of you. You will get there soon.
So it appears that increasing the click thru rate can really increase your ROI. In the example, if A increases his CTR by 1%, he would pay only .35 for the top spot, instead of .47Interesting stuff ...
You're right on!
