Webmaster Forum Rules | Posting Guide | Contact Us | Testimonials | Contributing Geek Program | Advertise on Geek/Talk
Welcome to the GeekTalk Webmaster Discussion Forums from GeekVillage.com

Click Here To Register. It's Free!

Go Back   geek/talk: Signature-free discourse for serious web publishers > YOUR PERFORMANCE: Website Promotion, Marketing and Growth > Marketing Your Website Online
User Name
Password
Register FAQ Calendar Search Today's Posts Mark Forums Read

Reply
 
Thread Tools Display Modes
Old 03-17-2005, 07:44 PM   #16
aab
Registered User
 
Join Date: Mar 2005
Posts: 22
Default

Does this mean they will never charge more than $500 at a time?

Thanks
aab is offline   Reply With Quote
Old 03-17-2005, 07:52 PM   #17
Czar

Webmaster
 
Join Date: Aug 1999
Location: Gold Coast, Queensland, Australia
Posts: 9,506
Default

At the moment, that is the case for standard advertisers. We're still on the $500 limit even through this often expires every 2-3 days at the type of volume we run. Very large advertisers may negotiate higher limits, but this likely involves supplying Google with a full credit application to ensure that the expenditure is sustainable and to protect Google against being left in the lurch with a large chunk of bad debt.

Mind you, the $500 limit is a fairly approximate value. You'll often find Google processing charges for $590, $571.34, etc, but never dramatically more than $500.
__________________
Czar

Follow Geek/Talk's Twitter Feed and Facebook Page to stay up to date with new discussion threads and online ad industry highlights.

Important GeekVillage Links: Home | Rules | Posting Guide | Report Trouble | Feedback | Advertise on GV
Czar is offline   Reply With Quote
Old 03-18-2005, 07:04 PM   #18
aab
Registered User
 
Join Date: Mar 2005
Posts: 22
Default

Well, I increased my budget from $25/day to $50/day, and my sales decreased from 3 to 0.

Any ideas? Should I leave it at $50/day for another few days? Should I adjust my CPC? Keywords?

Thanks
aab is offline   Reply With Quote
Old 03-18-2005, 08:11 PM   #19
Czar

Webmaster
 
Join Date: Aug 1999
Location: Gold Coast, Queensland, Australia
Posts: 9,506
Default

It's hard to say. A two-day sample really gives you nothing to go on, particularly if we're only talking about 50-100 clicks here.

Unfortunately, this is where search marketing canm get expensive. In my experience, it's not uncommon to burn through several hundred dollars before hitting the right balance between bid price, keyword selection and targeting; and this always involves more than 200+ clicks.

If you're nervous, pull the maximum cost-per-click down while you work on eliminating any usability issues that may adversely affect your conversion ratio. If your landing page and checkout process is as usable and marketable as possible, adjust your campaign settings to only show your ad in association with Google results, drop the CPC and see how things add up after a week and several hundred clicks have passed.

Paid search marketing certainly isn't a technique for the sqeamish, but once you become comfortable using the medium, you'll be able to work it in such a manner as to achieve whatever objectives you're hoping to reach.
__________________
Czar

Follow Geek/Talk's Twitter Feed and Facebook Page to stay up to date with new discussion threads and online ad industry highlights.

Important GeekVillage Links: Home | Rules | Posting Guide | Report Trouble | Feedback | Advertise on GV
Czar is offline   Reply With Quote
Old 03-18-2005, 08:25 PM   #20
aab
Registered User
 
Join Date: Mar 2005
Posts: 22
Default

So I should drop the Content advertising and use only the search results? Most of my clicks come from content but perhaps people arent as interested as those doing a search.
aab is offline   Reply With Quote
Old 03-18-2005, 08:39 PM   #21
Czar

Webmaster
 
Join Date: Aug 1999
Location: Gold Coast, Queensland, Australia
Posts: 9,506
Default

Limiting to search only can ensure that your visitors are more pre-qualified than those who see the ad in an AdSense banner. This also takes a little uncertainty out of the equation by providing you with a fixed target on which to test.

Once you get Google-only ads working correctly, you can then either expand the campaign out to include the contextual network, or can establish a new campaign with similar keywords but a lower CPC, and extend that to the content network only.
__________________
Czar

Follow Geek/Talk's Twitter Feed and Facebook Page to stay up to date with new discussion threads and online ad industry highlights.

Important GeekVillage Links: Home | Rules | Posting Guide | Report Trouble | Feedback | Advertise on GV
Czar is offline   Reply With Quote
Old 03-19-2005, 07:32 PM   #22
aab
Registered User
 
Join Date: Mar 2005
Posts: 22
Default

OK, after setting it to search only I am getting a LOT less clicks and I'm not even getting near my daily budget, is this normal? Perhaps I just didn't give it enough time.

Anyway, I also wanted to ask, is $2 CPC too much for selling a product that returns me $15 profit per sale and is a product that you buy only once?

This will need a pretty high conversion rate to be worth it, should I lower my CPC? Also, what does the CPC affect? How often your ads are shown or how high they are or what?

Thanks
aab is offline   Reply With Quote
Old 03-20-2005, 07:48 AM   #23
Czar

Webmaster
 
Join Date: Aug 1999
Location: Gold Coast, Queensland, Australia
Posts: 9,506
Default

Take your time. You need a solid sample before you can determine which settings work best for you. Don't worry if clicks have dropped on a weekend day following your restriction to search-only placement. That's perfectly understandable.

The CPC only matters when viewed in relation to your effective earnings per visitor. If a particular site returns $0.10/Google visitor, then a $0.12 CPC could be too high. If a site returns $12.00/visitor through selling high-end items or hooking customers in to long-term contracts with upselling opportunities, then the advertiser might bid up to $9-$10. Everything is relative. I can't tell you whether or not $2 is too much since I have no idea how competitive your terms are or what your effective returns/visitor are.

The CPC affects your placement. Although Google also takes click-through ratio into account when determining placement, ads associated with higher CPCs will often place higher than lower-bidded listings.

Hope this helps.
__________________
Czar

Follow Geek/Talk's Twitter Feed and Facebook Page to stay up to date with new discussion threads and online ad industry highlights.

Important GeekVillage Links: Home | Rules | Posting Guide | Report Trouble | Feedback | Advertise on GV
Czar is offline   Reply With Quote
Old 03-20-2005, 07:46 PM   #24
aab
Registered User
 
Join Date: Mar 2005
Posts: 22
Default

OK I still havent had any sales today, seems like only my first day got great results and then nothing.

I just though of something else, assuming a daily budget of $50, wouldnt $1 CPC mean I'd get 50 clicks/day and $2CPC I would get only 25/day for the same price?

Surely there must be a downside, since I'm sure a $0.01 CPC won't result in 5000 clicks/day?
aab is offline   Reply With Quote
Old 03-20-2005, 08:02 PM   #25
Czar

Webmaster
 
Join Date: Aug 1999
Location: Gold Coast, Queensland, Australia
Posts: 9,506
Default

There is a downside, and it relates to placement.

As noted, ads associated with higher CPCs will often rank higher. This, in turn, will increase the likelihood of the ad producing a greater volume of clicks and (if recent studies are to be believed) will also enhance conversion rates.

A few small notes about your calculations:
- Setting your maximum CPC at $2 will not mean that every click costs $2. If the top listing on a less competitive term is secured at $0.30, for example, and you bid $2, Google will automatically reduce your bid to just enough to keep you above the #2 ranked site (ie, that click may cost just $0.32)
- Yes, setting a lower CPC may generate more volume at less price if you are consistently meeting your cap, which is dropping your bid is an option worth exploring.
- As per the statement above, however, a lower bid may effectively knock you out of contention for the best converting visitors, and will almost certainly decrease your ability to reach the maximum volume of clicks for a particular term.
- Google's minimum cost per click in the US market is 0.05, so 0.01 clicks are not attainable.
- Tiny bids (0.05, for example) are useful when used in connection with some terms. For competitive terms, however, a bid of that size will likely see you receive either nil traffic, or a few junk clicks each day.
- As such, the basic math of cheaper clicks = more clicks = more sales does not always pan out, as much as we'd all like it to.

Hope this helps.
__________________
Czar

Follow Geek/Talk's Twitter Feed and Facebook Page to stay up to date with new discussion threads and online ad industry highlights.

Important GeekVillage Links: Home | Rules | Posting Guide | Report Trouble | Feedback | Advertise on GV
Czar is offline   Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
When to start with advertising, if ever pgkooijman Making Money with CPC and/or CPM Programs 15 11-13-2001 04:00 AM
First Australian Online Advertising Effectiveness Study Stuart D Making Money with CPC and/or CPM Programs 0 06-26-2001 05:57 PM
I Have $100 for Advertising jokaroo Archives of old posts from Let's Barter/Trade, Buy, & Sell 15 06-15-2001 04:55 PM
Low Budget Reporting For Affiliate Program ReadTheGR Web Design and Webmaster Issues 0 05-03-2001 05:07 AM
advertising online: what next? Aaron Dragushan Making Money with CPC and/or CPM Programs 19 01-18-2001 09:34 AM

Please support our advertisers. They ensure our survival.

All times are GMT -5. The time now is 11:41 AM.


GeekVillage.com is copyright © 1998-2015 Curiosity Cave - Science gifts for clever kids. All rights reserved.
Powered by vBulletin® Version 3.7.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.