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Cost Per Click question

         

w_s_o

6:10 pm on Aug 2, 2005 (gmt 0)

10+ Year Member



Something I've never fully understood on how pricing is determined for broad matching. Let's say that myself and two others are the only competitors in the "widgets" industry. Further, for simplicity, let's say that all bids are for broad matches (none for "widgets" or [widgets]).

For WIDGETS, I bid $5, competitor 1 bids $10, and competitor 2 bids $2. Now I know that I'd be charged something like $2.01 for my clicks. But let's say I also have STICKY WIDGETS in the same ad group, and my competitors do not. And let's say someone searches on REALLY STICKY WIDGETS. All three of us would have our ads shown, because we all have the broad WIDGETS term in our list. But I'm thinking that I would be shown first, because I was the only one who specifically bid on STICKY WIDGETS. Is that right? More importantly to me, how much am I paying for that click? Still $2.01? Or should it be lower because nobody else bid on STICKY WIDGETS? What if I my bid for STICKY WIDGETS was only $1 (with WIDGETS still at $5)? Would my ad be displayed above people who only bid on WIDGETS, but bid higher? Would my $5 bid for just WIDGETS trump theirs? Would a click on my ad be at my bid for STICKY WIDGETS or at my bid for WIDGETS?

Basically what I'm getting at is can I achieve a lower CPC with more specific words if the broader words are present in the campaign as well?

Thanks!
Tom

RedWolf

6:41 pm on Aug 2, 2005 (gmt 0)

10+ Year Member



You would not gain any advantage on the two broad matched bidders since Google only pretends that relevant targeted ads are preferred. If they bid more than you and have a good CTR, then the ad will appear in the normal order as for WIDGET.

The big question is whether the WIDGET ad or the STICKY WIDGET ad will be displayed. It is my understanding that the one that Google thinks will make it more money (figuring CTR and CPC) will be the one shown and charged for unless you have STICKY as a negative keyword in the WIDGET adgroup. If the STICKY WIDGET ad has a very high CTR, then it might be good enough to make it to the first position though.