Lower AdWords CPC, In China only $0.02/Click

Google adwords spread fast in China & poland

[hotice_2002]

In Chinese Google AdWords, I noticed that my average CPC has been lower than before, now it is only $0.02(0.10RMB) or $0.03(0.20RMB) per click.

Before the updating, it is $0.05(0.30RMB) at least!

Now the BaiDu CPC is about $0.04, Google is lower than Baidu. Maybe it is Google's policy to occupy Chinese Internet marketing.

[mike_ppc]

Yes, I also found it in Google help. I wonder when has this come into place!

Unfortunately, this applies only for billing addresses in China or Poland AND for campaigns targeted for China and Poland.

I wonder why..... For China I could see some point, but why Poland? Why not India? Or Russia?

[Shak]

Here’s an example of how these two minimum CPC values work: Your billing address is in China, and you set up a campaign that targets China. Because China has a local minimum CPC, you can enter bids as low as USD$.02 per click. Suppose you then change the country targeting of your campaign to include the United States. To target the US, you will need to bid at least USD$.05 in order for your ads to show. It is still possible that you will pay as little as USD$.02 per click from users located in China because the AdWords Discounter will automatically adjust your CPC based on the location of the user.

[adwords.google.com...]

great entry move into 2 huge markets, where certain BIG spenders would have wanted low entry barrier...

makes sense

Shak

[mike_ppc]

Shak, thanks for quoting, but I was interested in your in-depth comments as a Senior Memeber.

And it only encourages advertisers from China/Poland. Other's advertisers MinBid remains the same.

Do you have any insights that other countries could come up on this list?

[Shak]

Mike

Having just been in china over the last few weeks allows me to make the statement above, and this was based on talking to a few big spending agencies out there.

Poland is probably the same.

smart move by Google indeed.

Shak

[SlyOldDog]

Take it from me Shak, Poland is not a huge market. I live here :)

I can understand why they did it though. Polish search terms never have adwords bids on them. In fact most people don't use Google here. They use wp.pl and onet.pl

[Shak]

Sly

I meant huge market in population, rather than the AD market.

A lot of the big players want coverage but also ROI, and emerging markets with Google previous CPC might have been difficult.

Overall a very good move for the INDUSTRY as a whole.

How is Poland these days ;)

Shak

[itisgene]

Adwords' Min CPC in Korea is $0.08 with $8.00 activation fee. And Google has less than 10% of market share in Korea for search traffic.

[SlyOldDog]

Hi Shak

I think 38 million people live here. Internet penetration is low and Poland came bottom in Europe a recent survey of how well countries use the net.

Poles are generally too poor to afford a computer/internet except for people in the big cities.

Big market - yes, but for supermarkets, security and insurance :)

[Shak]

point taken!

I'll ask for my comment to stay in relation to CHINA

;)

Shak

[shri]

You also have to factor in the rumoured amount of click fraud originating from and perhaps targetting Chinese advertisers.

[nomatter]

I also noticed my adsense was cut half amost.

[mykel79]

As a Pole (living in Poland) I think I have to set the record straight. 25% of Poles have Internet access. While that might not be much in percentages, that's 10 mln people. That makes it the largest Internet market of the new EU member states.
You are right, a lot of people use Onet.pl and Wp.pl. Those portals have launched their own versions of adwords, so I guess Google has to fight back. [clickz.com...]

[SlyOldDog]

I guess you are counting dialup in the 25%?

Maybe then if you count the whole family using dad's PC :)

[janethuggard]

This may be a sign of things to come, worldwide. With the increasing competition in foreign markets, and Google hunkering down to lower cpc on the adwords, they could very well do the same here, in the u.s., when the big guns come out for a show down for the u.s. market...yahoo and msn.

This can not possibly be good for the publishers... take note publishers, and make some savy investments with the big adsense bucks we enjoy now. This gravy train is not going to run forever. We could be looking at income levels that are only 25%-50% of what they are now, within the next two years. Then a period of another 2-5 years for the ecommerce participants to increase enough to bring competitive bidding back up where it is now.

Something to think about. The writing is on the wall, in China.

[Voyteck]

Just to make some issues clear: In Poland the market is divided into 3 main players:
Google - 60,6% as of week 22.III do 28.III
Onet.pl 16.9%
WP.pl 15.5%

If needed I can bring up the source.