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Google AdWords Keyword Pricing – What will my keywords cost?

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.

  • Comments(1)

Posted by Siren Search Mon, February 28, 2011 23:22

If you require any more information on keyword pricing call us on 0800 612 8077