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What Does High Cost Per Click Indicate?

Cost Per Click (CPC) in Adwords is the cost of each click when someone searches and found your PPC ads relevant, this is the price that you pay for the traffic from Google. So if you have a high cost per click, it just means that you have a very competitive keyword and that a lot of your competitors wants a position in the first page of the search result as well.

In my previous post, on High Cost Pay Click, Competitive Market, What To Do!, I shared on how to rectify when you have this situation.

Today, I will go further on why the cost per click will continue to increase in cost, and how you can further solve this ever increasing cost per click problem by just changing a very simple yet not known to a lot of PPC users.

Why Cost Per Click Will Continue to Increase in Cost?

As more and more people realised the power of the Internet, where they can track results on their business, whether their advertising is working, how many people saw the ad, how many click on the ad, how many become leads from the ad, and how many was converted to sales from the ad. All this can be track, whereas the newspaper you can’t track a lot of things like how many saw your ads, this is a very important element that we as marketers want to know. This can be shown only in the online marketing.

The supply (number of ad positions) in the Google search results is only 11, and there can be as many as 100 competing to be on the page one of the search result, thus making the cost per click increase more than ever before. This is just like in stock market where there are a lot of buyers, but little sellers, making the price of the stock increase in value. We as PPC users are the main cause of making the cost per click increase.

So how do we find solution to this problem?

I shared a smart solution on the post of High Cost Per Click, Competitive Market, What To Do! You can read more about it. Today I will share with you on a more advance strategy where most PPC marketers do not use and that you can take advantage in.

One of the most important reason why some keywords are so expensive are they are very general and usually make up of 2 or 3 words. This is where the most expensive keywords are usually landed. In order to get a better keyword to target, you need to target on the long tail keywords of the market you are in.

You need to find out at first what is most general keyword of your market, preferable two words or less, then from there buy this keyword in the PPC position where most will see and click on your PPC ad. I would use phrase and exact match only for this strategy.

What this will do is help you in two things, one is to find out the long tail keywords people are using to search online, second is to find out the negative keywords that are not in your negative keywords list in your Adwords campaign. Thus making your campaign very tight and focus.

I will share next on how to even tighten and focus on your Adwords Campaign on the coming post. Do you have anything that you want to know, or not sure? Please use the comment and I will reply to you.

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