Why is Google charging more for less competitive keywords?
January 27th, 2006 by Vamsi
I was always wondering and was postporning to write about this.
There is somthing very intresting and something which makes no sense whatever the reason might be.
Click here the image to see full size image.
The keyword for example here is marilyn monroe.
If you can see the average cost per click I was charged is $0.30 but the number of people bidding for it are very less.(may be just another 2-5 people maximum could be bidding for it.
When there very less bidders or no bidders, the min cost per click(CPC) should remain the minimum right? but why is it high and the system keeps asking me to increase the bid from time to time, may be untill i reach the maximum i can spend? may be untill the adwords system thinks its making enough revenue for google from me?
It does’nt sound fair to me that google valuates the Min CPC based on the number of displays. Popular keywords will obviously have more searches and so more displayes for the ad. So, more price? Somehow its not fair. And unless you increase your bid to what the system asks you, your ad is not displayed. how fair is that?
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