Archive for CPC
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Say hello to placement targeting
We wanted to let you know about two recent changes to our site targeting feature. As you may know, site targeting allows advertisers to select specific publisher sites on which to run their ads. Advertisers can target your site if they’ve determined a match between their offerings and the interests of visitors to your site.
The first change is that we’ve renamed ’site targeting’ to ‘placement targeting’ to better reflect the variety of targeting options we offer. Advertisers can still target their ads to an entire site, but they can now also target your individual ad units or groups of pages based on how you’ve set up ad placements using custom channels. Over the next few weeks, we’ll be updating references to ’site targeting’ in your account and in our Help Center.
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Clicks, Conversions, and Christmas
Online advertisers have noticed that CPCs tend to increase during the holiday season and have asked us why. We turned to Hal Varian, Google’s Chief Economist, for an explanation:
Many advertisers track their average cost-per-click (CPC), but what really matters for the bottom line is the average cost-per-acquisition (CPA): how much you have to spend on advertising to make a sale. The third factor to watch is the conversion rate, which is defined as conversions (sales) per click.
Note that these numbers are neatly tied together by the convenient formula:
CPA = CPC/Conversion rate = (cost/click)/(conversions
/click).
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Google AdWords Min CPC, Max CPC and Avg CPC clarified
Recently we posted about a common misconception regarding Minimum CPC (cost-per-click) and how it is determined. Today we’d like to expand on the theme of CPC, and define the other CPC types that you’ll see in your AdWords account.
Minimum CPC - also referred to as Min CPC or Minimum CPC bid:
As discussed in our previous post, a minimum cost-per-click (CPC) bid is assigned to each keyword in your account based on its quality (as measured by its Quality Score). The minimum bid is typically the least amount you can pay per click in order for your keyword to show ads. It is important to note that minimum CPC is set by the AdWords system, and not by the advertiser.
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AdWords Clicks, Conversions, and Christmas
Online advertisers have noticed that CPCs tend to increase during the holiday season and have asked us why. We turned to Hal Varian, Google’s Chief Economist, for an explanation:
Many advertisers track their average cost-per-click (CPC), but what really matters for the bottom line is the average cost-per-acquisition (CPA): how much you have to spend on advertising to make a sale. The third factor to watch is the conversion rate, which is defined as conversions (sales) per click.
Note that these numbers are neatly tied together by the convenient formula:
CPA = CPC/Conversion rate = (cost/click)/(conversions
/click).
Related posts
A Common Misconception Revisited
Today, we’d like to revisit a common misconception, about which we receive quite a few questions. In the first part of the post, we will very briefly cover the most important facts and in the second we’ll take a more detailed look at four related questions.
The common misconception: Many advertisers believe that if they have no competitors for a keyword, their minimum cost-per-click (CPC) will automatically be lowered by the AdWords system to $0.01, the lowest possible CPC.
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Optimizing Instablogs
Instablogs is a blog network that publishes more than 200 posts a day on 136 blogs spanning 16 niche channels, including luxury gadgets blog Bornrich and technology blog Gizmowatch. With 200+ bloggers blogging from all over the world, Instablogs has around 2 million unique visitors per month.
Instablogs co-founder Ankit Maheshwari tells us that AdSense works well with each blog’s unique content. “Since our blogs are very niche-oriented, it’s tough for us to sell our inventory directly to advertisers on blogs with less than 30,000 page views per month,†he says. “AdSense’s high CPC offering and huge advertiser database can help monetize the page views on any site irrespective of its size.â€