PPC ManagementPosted by Siren Search Mon, January 31, 2011 22:54
When selling the idea of Google PPC Marketing
through AdWords to potential clients, a common question that arises out
of initial conversations is “what will my keywords cost?” – As any
seasoned PPC campaign manager will know, there is no hard and fast rule
to calculate this for the potential client. Of course, if you manage
another campaign in the exact same sector then you will have a better
idea but not and exact idea as keyword prices are unique to each client.
Since your CPC plays a pivotal role in determining your Ad Rank it is wise to consider this before going in too low or even too high.
Google Ad Rank: Cost Per Click (CPC) bid x Quality Score
From years of experience, I have come to understand that trying to work
out things from a mathematical view, in other words attempting to work
out Google’s algorithms is pointless and will not provide you with a
solid answer because the algorithm above contains a factor called
‘Quality Score’ which is equally as difficult to determine. Add in to
this the algorithms for calculating maximum CPC you will be even more
confused as this is based on what the person appearing below you is
willing to pay.
Instead looking at it subjectively for each client will at least give
them a good idea of relative costs. This way the cost of the click would
actually be a figure set in the clients mind rather than a client
manager. The best way to explain this is to get your client to think
about how much they or their competitor would be willing to part with
and still remain profitable to gain a sale on a monthly basis – strictly
speaking their lowest ROI. Then the cost of the click would be relative
not only to the client, but also their market.
For example, a cake seller’s CPC is not going to be a high as an estate
agent’s CPC because the profit margins are so very different. Hence you
would expect the cake seller to pay a much lower CPC than the estate
agent. In this example, getting the client to think relatively will make
it easier to justify a higher CPC where required.
If there is more profit margin in the client’s business sector the it is
more likely that the relative market would be willing to pay more for a
conversion hence the CPC would be higher. If a high CPC was a problem
for some clients, then a way around this would be to identify niche
keywords that would not have as many impressions but are related. These
keywords may also be useful because users who use them maybe further
down the buying cycle and in a position to do business.
In conclusion, CPC cost is relative to each market sector and unique to each client – so why try to second guess it.
Siren Search provides a PPC Management
service that takes into account all the significant variables in CPC
and combines this with extensive knowledge gained form managing numerous
PPC accounts to provide a PPC service which takes CPC very seriously.
Our aim is to provide you with the most cost effective source of advertising through PPC Management, so please get in touch with us today to see how we can help lower you CPC and provide you with a PPC Management Company that delivers results.
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