The Cost of Bidding for the Top Position on Google Adwords
Writing about web page http://ppcPromotion.co.uk/adwords-roi
One of my companies recently raised their Google Adwords bids and budget. They were effectively giving Google enough budget to place their Ads consistently at position number 1. We discussed this and left the bids high but used position preference to bid for position no 3. The client then modified this to position 2.
The table shows how the clicks and the costs ramped up from position 3 to 2 to 1. The average cost-per-click, CPC, ramped from 24p to 31p to 52p which does not look as bad as the total cost. The problem was that they were paying the increased CPC for all of the clicks. If we look again at the figures and cost the extra clicks then we can see that the incremental CPCs go from 24p to 68p to 97p.
It was notable that being at no.1 did bring in a lot more clicks. Further analysis showed that these extra clicks were for more general keywords that had not yet been optimised into their own Ad Group. The good news was that these extra clicks could be generated for a lot less than 97p each.
Robert McGonigle
21 Oct 2008 12:47
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Tags: Cpc Google Adwords Keyword Bidding Position Preference Ppc Search Marketing
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Robert McGonigle
Before making major changes to this account the owner took my advice and improved his Page Titles. His free traffic soon outgrew the PPC traffic so he throttled the Adwords back. It is a good idea to keep the paid options open as a change to the Google Dance can see the organic traffic dry up. See my `Why Adwords
Page to see this holistic approach to search marketing.
29 Apr 2012, 23:03
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