enquiry on Max CPC

July 16, 2007 on 8:39 am | In Questions and Comments | 2 Comments

Hi Tony,

Thanks for the products you suggested to sell as it does make sense now and I have change the products I want to sell to products who’s commission is based on user registration and trial leads.
I’ve been advertising on Adwords for almost two months now and I have noticed that having Max CPC of less than 8 cents does not result in many impressions, let alone click rate. This happens when I target the US audience. Targeting worldwide audience does not give this problem and I get a high number of clicks. But the problem is, most of the products are targetted specifically to the US market. Is there a way of having low max CPCs targeting products to the US markets? Could it be related to my maximum daily budget?

Regards,

Shazli

2 Comments »

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  1. Shazli,

    The US markets tend to be more competetive, and this means that bidding conservatively – for some search terms – it can take a long time to;

    a. Get enough clicks on a new campaign to determine your EPC.
    b. Build up a performance history for your ads that is deep enough to evaluate them with.
    c. Get traction in the marketplace, even with a better ad.

    This pushes a lot of people to bid very aggressively in the beginning. It works out well for a few, and is expensive for most. My advice, especially early on in your search marketing career, is to be patient.

    That said… if you do want to speed up the initial process, even understanding that you will likely spend more than you will make back right away, then do so very cautiously. You can raise your bid slowly, a few cents every day, and within a week you should see more clicks. It is even more important now that your daily budget is a figure you are very comfortable exhausting, because even when watced closely, campaigns sometimes gain traction quickly, and aggressive bidding could result in your losses piling up quickly.

    As soon as you have enough data to confidently project your EPC, get those bids back in line with your expected EPC. Don’t try to control a space with aggressive bidding, you’ll just run out of money, and the old ads will take their place back when you are forced to shut down yours. Be patient, be happy to make even a cent or two on a small number of clicks while you work on the campaign – because as long as you are making money instead of losing it, you can stay in the game forever – and focus on improving your ad text, because better ad text will lower your costs, and increase your volume. Then, you may be making much more than just a penny or two per click, and on a much higher volume of clicks too!

    Your daily budget certainly has some impact on how often your ads are shown, but until you know you are making money per click – and not losing money – it is much more dangerous to raise the daily budget above what you originally felt comfotable risking.

    Tony

    Comment by Administrator — July 17, 2007 #

  2. Thanks Tony for the great advice. :)

    Comment by shazlig — July 17, 2007 #

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