All 1 entries tagged <em>Search Marketing</em>Robert McGonigleRob McGonigle's WebLog. This blog records my research and thoughts on search marketing. Many entries contain stuff removed to re-focus my OU project, "Identify the enduring concepts of Internet Search for SMEs".https://blogs.warwick.ac.uk/robmcgonigle/tag/search_marketing/?atom=atomWarwick Blogs, University of Warwick(C) 2024 Robert McGonigle2024-03-29T10:06:18ZThe Cost of Bidding for the Top Position on Google Adwords by Robert McGonigleRobert McGoniglehttps://blogs.warwick.ac.uk/robmcgonigle/entry/the_cost_of/2012-04-29T22:03:27Z2008-10-21T11:47:41Z<p class="answer">Writing about web page <a href="http://ppcPromotion.co.uk/adwords-roi" title="Related external link: http://ppcPromotion.co.uk/adwords-roi">http://ppcPromotion.co.uk/adwords-roi</a></p>
<p>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.<br />
<img style="float:right;padding-left:5px;" src="http://blogs.warwick.ac.uk/images/robmcgonigle/2008/10/21/123-costs.jpg?maxWidth=500" alt="Increasing costs of bidding for position 1" title="Increasing costs of bidding for position 1" border="0" />The table shows how the clicks and the costs ramped up from position 3 to 2 to 1. The average cost-per-click, <span class="caps">CPC</span>, 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 <span class="caps">CPC</span> 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.<br />
<img style="float:left;padding-right:5px;" src="http://blogs.warwick.ac.uk/images/robmcgonigle/2008/10/21/123-delta.jpg?maxWidth=500" alt="Real incremental costs for increasing the position." title="Real incremental costs for increasing the position." border="0" />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.</p><p class="answer">Writing about web page <a href="http://ppcPromotion.co.uk/adwords-roi" title="Related external link: http://ppcPromotion.co.uk/adwords-roi">http://ppcPromotion.co.uk/adwords-roi</a></p>
<p>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.<br />
<img style="float:right;padding-left:5px;" src="http://blogs.warwick.ac.uk/images/robmcgonigle/2008/10/21/123-costs.jpg?maxWidth=500" alt="Increasing costs of bidding for position 1" title="Increasing costs of bidding for position 1" border="0" />The table shows how the clicks and the costs ramped up from position 3 to 2 to 1. The average cost-per-click, <span class="caps">CPC</span>, 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 <span class="caps">CPC</span> 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.<br />
<img style="float:left;padding-right:5px;" src="http://blogs.warwick.ac.uk/images/robmcgonigle/2008/10/21/123-delta.jpg?maxWidth=500" alt="Real incremental costs for increasing the position." title="Real incremental costs for increasing the position." border="0" />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.</p>1