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Old 1st August 2006, 04:11 PM   #1
Christine24
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Default How the Cost Per Click is Decided?

On what basis the cost per click in PPC advertising is decided? Is it based on selecting keywords? If it is so, how can I select the best keyword which gives more revenue?

Thanks.

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Old 1st August 2006, 08:23 PM   #2
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Are you asking what determines CPC in PPC advertising? If so it is based on what advertisers are willing to spend. The more competition for a keyword or phrase, the higher one will typically have to bid if they want top ad placement.

As for which keywords are the best money makers, that is a hard question to give a straight answer for. That is why it is important to make sure your site creates the best user experience, you are offering a quality product and/or service and measure the results carefully to learn what works and what doesn't, what makes money and what does not.

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Old 2nd August 2006, 07:25 PM   #3
A.N.Onym
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As a matter of fact, Google AdWords take much more than that when deciding the cost per click, becides the obvious competition for the keyword/place, such as:

- use of keywords in the ad title
- use of keywords in the description
- keywords in the target URL
- the quality of a landing page (the amount of content there and presence of the same keywords there: in title tags, meta tags, main content area, anchor text to the page)

Since recently, Google also takes the site reputation into account, however, judging by the outcry this change prompted on forums, the Google has yet to tweak the Google AdWords landing page algorithm.

At any rate, you can check this article on improving your AdWords campaign quality.

If you were referring to getting revenue from AdSense, the only way to increase the revenue is to target the most expensive keywords, get the most traffic and place the ads in the most visible areas. There also can be a debate whether to provide extreme quality landing pages for people to stay longer on your site or low-medium quality for people to click on the ads.

You can determine the costs of clicks (both for your AdWords campaign and for AdSense) at the Google Keyword Suggestion tool.

Feel free to ask any more questions.

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Old 3rd August 2006, 10:19 AM   #4
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Quote:
Originally Posted by A.N.Onym
As a matter of fact, Google AdWords take much more than that when deciding the cost per click, becides the obvious competition for the keyword/place, such as:

- use of keywords in the ad title
- use of keywords in the description
- keywords in the target URL
- the quality of a landing page
That is how they determine where an ad will appear in the results. CPC (cost per click) is how much money one is willing to spend per click thru which as I said beforehand is determined by the advertiser. Of course because Google uses bid gaping, you will only pay 1 cent more then the next lowest bid and not necessarily your top price.

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Old 3rd August 2006, 05:10 PM   #5
vangogh
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Christine it sounds like you're more interested in the AdSense side of things. If I'm wrong then feel free to ignore what I say here.

If you do a search for 'top paying AdSense keywords' or something similiar you should find a lot of lists. How accurate those lists are I can't attest to.

You can also just sign up for AdWords and see what the bids on different keywords are.

One thing to keep in mind with AdSense is that there is more than one way to increase revenue. High paying ads are one, but you can also work to increase your click through rate (CTR). And in the end no matter how much you get for an indivudual click your revenue will depend a lot on how much traffic you can bring to the site.

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Old 3rd August 2006, 07:56 PM   #6
A.N.Onym
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Well, you can have a fixed PPC budget and have different results, based on the quality of your ads and landing page.

In a sense, the more you spend on AdWords, the easier it is for your ad to show up at #1, but it won't make sense from the point of view of campaign efficiency.

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