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CTR doubles. CPC increases 6 fold.?

         

ucdawg12

8:53 pm on Jun 12, 2006 (gmt 0)

10+ Year Member



This month my CTR has raised from 10-11% to 22%, my clicks up from 1.5k to 3k, which delighted me til I saw my CPC had gone from 0.03 to 0.18... This has really blown my mind since I can't find any reason for the large increase in CPC, I have always been the lone advertiser for this word, and I still am, and even more frustrating is how my CPC increased such an insane percentage when my CTR went UP. I don't understand this at all and it has really killed my rate of return. On the weekend things went back to normal, 10% and 0.03, but again its gone up on monday. Can anyone give me a rational explanation on this?

bostonseo

11:18 pm on Jun 12, 2006 (gmt 0)



Welcome to the new Adwords - prices have been crazy since April of this year.

bostonseo

11:22 pm on Jun 12, 2006 (gmt 0)



Forgot to mention - that it seems the better your click thru the more you pay. I know that's contrary to the Adwords policy and everyting, but the numbers don't lie. And no it's not because the CTR is a recent spike - don't buy into that idea that you will start to see a 'discount' for sustained high CTR sometime down the line - that was the OLD Adwords.

Soze

3:53 am on Jun 13, 2006 (gmt 0)

10+ Year Member



I don't think that is the case. I have never really experienced that. In my experience, higher CTR = lower cpc.

mike_ppc

7:45 am on Jun 13, 2006 (gmt 0)

10+ Year Member



ucdawg12,
I remember you had the same problem last year. I am sure it is the same thing: an occasional competitor bidding on a broad or expanded match.

TMF_Melissa

4:07 pm on Jun 13, 2006 (gmt 0)

10+ Year Member



Interesting - I saw a huge spike in CPC May 28th to June 3rd - no common sense reason why (competitors, increased traffic, lower CTR, increased CTR) everything stayed the same except the CPC....

Ah the mysteries that are Google.

Israel

2:56 am on Jun 17, 2006 (gmt 0)

10+ Year Member



Forgot to mention - that it seems the better your click thru the more you pay. I know that's contrary to the Adwords policy and everyting, but the numbers don't lie.

My recent experiences agree with BostonSEO's 100% - Soze posts next that s/he sees the opposite happen (like it did for years).

There are more factors (or bugs) at work here than we know about, it appears.

Israel

Israel

5:16 am on Jun 17, 2006 (gmt 0)

10+ Year Member



Wait a second...

A thought (rare) just occurred to me.

Seems to me I used to read that the CTR shown in the Adwords interface included Search & Content clicks. However, as far as being "judged" by Google, the only CTR that mattered was the one that accumulated on google.com (which was essentially hidden unless you stayed off Search & Content).

The idea was that your CTR should not be hurt by participating in the often poorly performing Content Network (and by default that included the Search partners).

Is it possible that the huge CTRs many have seen, including myself - double what they were a year ago are coming from non-converting Search partners? I've avoided Content almost since Day 1.

My Google.com CTR might actually be lower than it used to be because of the increased # of often useless dynamic ads that now make up the majority of Adwords listings. I didn't change my methods except to become more skillful over time, IMHO.

---

Only way to find out for sure is to bite the bullet and turn off the good/bad Search Network for a while and see if my CTR drops from its often double digit recent performance. A number that does not appear to be helping my CPC, in fact seems to be doing the opposite to it.

---
Now a poster wisely suggested recently that there was no "technological barrier" to Google allowing one to pick and choose Search partners, much as it was forced to do with Content. According to my logs, Search referrals are split about 50/50 between "real" Search Portals and the junk that now qualifies as "Search". Many of us dumping Search would be a big revenue hit for Google, I would imagine.

By "junk", I mean sites that common sense tells me no one really uses to "Search" for anything. By "real", I mean cable/dsl home pages, AOL even Lycos. I can't afford to "support" both and make a good profit, perhaps others are in a better position to absorb the useless clicks.

Could all the "junk" explain my "great" CTRs of late, yet no reward in my CPC as we used to see?

Does anyone else remember my initial statement that it is only the Google.com CTR that "counts"? Do I have that part right, old timers?

Any thoughts on this theory, depressing though it is?

Israel

poster_boy

8:07 pm on Jun 17, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Isreal, I agree with your assessment.

I try to stay out of the mudslinging that threads like these all too often turn into - but, IMHO, it is a very real issue. But, let's not only look at our own self interests as advertisers, but how about the quality search syndication partners themselves?

Why isn't AOL or Comcast more upset about this?

I'd be willing to pay several multiples higher than my current CPC for AOL's traffic, if only I could eliminate the junk that comes along with it...

Soze

8:40 pm on Jun 17, 2006 (gmt 0)

10+ Year Member



I should note, I don't have any keywords with like than %30 CTR. You may be inscreasing you CTR, but not enough to compensate for others increasing their bids.

Keep this in mind. When you increase you CTR, most other competitors' CTR are probably dropping. If they drop a lot, Google will make them raise their min bid. By making ads with very bad CTRs pay more, they are also making you pay more because the bids below you are now higher.

poster_boy

9:00 pm on Jun 17, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



When you increase you CTR, most other competitors' CTR are probably dropping. If they drop a lot, Google will make them raise their min bid. By making ads with very bad CTRs pay more, they are also making you pay more because the bids below you are now higher.

So, what you're saying is... increasing your CTR ultimately increases your CPC...

Soze

5:39 pm on Jun 18, 2006 (gmt 0)

10+ Year Member



Ha. Kind of fell into that one. I depends how much you increase it I suppose. Like I said, I've never experienced it. Just a possibility. The chances of you decreasing a regular competitor to the point of his ad losing that much quality is unlikely. It's more likely to happen to new competitors with no history.