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  1. #1
    Newbie
    Join Date
    January 15th, 2011
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    49
    Question Whats The Lowest CPC On Googles Content Network?
    I'm just curious what all of you are paying per click on googles content network.

    I was testing a web hosting ad which I'm an affiliate for. I found it cheapest to use the cpm pricing.

    I was getting a 0.09% CTR over all. I was paying 0.20 p per click on average. Is this good and ofcourse web hosting is very competitive.

    I did this experiment a few months ago.

  2. #2
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    Join Date
    January 18th, 2005
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    2,973
    In my experience, a clickthrough rate of 0.1% or less is statistically indistinguishable from "background noise" (random accidental clicks on links, which Google doesn't deliberately exploit as some other networks do).

    With some effort (very active management), in the past I've profitably managed campaigns with CTR rates below 0.5%, but I've never found a way to profit from any advertising channel drawing less than 0.1% CTR.

    It really doesn't matter what you're paying -- the question is what ROI you are getting. If you're paying 20 cents per click, the real question is whether you're earning back more than 20 cents per click. For example, if you earn an average of $5 per transaction, you'd need 1 out of every 25 clicks (4% conversion rate) to result in a transaction, just to break even. If you earn an average of $20 per transaction, you'd need at least 1 of every 100 clicks (1% conversion rate) to result in a transaction, to break even.

    In 2005-2007, I ran campaigns (including some direct-to-merchant campaigns) profitably across the Content Network. In past years, I was able to draw significant amounts of consistently profitable traffic at bid rates of 4 to 7 cents per click, with very little time spent managing the account. With active management (closely monitoring activity and manually excluding hundreds of "garbage" sites per week), I could profit from CPC rates of 10 to 12 cents per click on the Content Network, for some keywords.

    However, two significant changes have occurred since then.

    First, Google has re-categorized some traffic on some "content network" sites (including about.com) as part of the "search network." I loved having my ads appear on about.com (whether as part of the content network or search network), but by moving these higher-quality content sites, Google lowered the quality of the remaining Content Network, and also removed the ability to target sites like about.com directly. (I think about.com is still listed as part of the Content Network, but when I advertised in December [2010] and January [2011], clicks from static content pages at about.com came through the Search Network; the about.com traffic was profitable, though much of the other Search Network traffic was not).

    Second, CTR and conversion rates have both dropped significantly across the Content/Display Network (probably because those high-traffic, good-quality sites were moved into the Search Network). (Inexplicably, bid rates for the Display Network are also much higher than in the past, probably for the same reason that many search keywords command absurd bid rates: because there's a constant flow of ignorant newbies who each pay those rates briefly.)

    I no longer advertise on Google (as explained in another discussion thread here).
    Last edited by markwelch; February 20th, 2011 at 05:57 PM.

  3. #3
    Member
    Join Date
    January 14th, 2011
    Posts
    116
    I had been experimenting with a PPC of .2 for last three months and found the conversion was very poor. I have raised the pay from .2 to .7 and could see significant ROI for last month. I would suggest to you try with .7 for next one month and see the change.

  4. #4
    Newbie
    Join Date
    January 15th, 2011
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    49
    Is this 0.70 per click on the content network?

    I don't get how you make a profit with such a high advertising price.

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