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  1. #1
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    How is it that a keyword that has only one other competitor on Overture costs me 5 cents per click but that same keyword, with NO competitors, costs 83 cents per click on Google Ad Words? Am I not understanding how these Ad Words work? I bid 5 cents for the keyword, but Google tells me the minimum is 83 cents. How do they determine that when no one else is bidding on the word?

    ---Hershey

    "Wherever you go, there you are."

  2. #2
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    You'll run into that a lot. Some words have more value then others. Words where the minimum are that high won't likely have many people bidding on it.

    May all your ups and downs be in bed

  3. #3
    ABW Ambassador BareNecessities's Avatar
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    Hi Hershey,
    That is a BIG BIG problem with the Google Adwords program.
    For now, they have imposed minimum prices that artificially inflate the value of various search terms.
    My guess is that they will eventually (and hopefully soon) modify their program so that market competition drives the price.
    In the meantime, you should definitely closely monitor your ROI on Google advertising.
    Best of luck with your program.
    Thanks,
    Michael

    Michael
    973-621-6211 x 5040
    michael(at)barenecessities.com

  4. #4
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    Hang in there ... The minimums tend to be inflated by what people on the old Adwords pay-per-impression program are effectively paying per click. That program is due to end at the end of September, so after that the suggested minimums should hopefully be better in tune with market realities.

  5. #5
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    Thanks for the insight. I hope you are right, Buckworks. Maybe October will be a better time to try Ad Words.

    ---Hershey

    "Wherever you go, there you are."

  6. #6
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    January 18th, 2005
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    Good question and very informative replies. I didn't know about the impact of the Adwords demise.

    Although I've experienced similar problems, I've had some luck using less common keyword combinations and misspellings. I found most of them using Ken Evoy's "Brainstorm" program, part of his SiteBuildIt web site creation software. It's similar to Wordtracker.

    I imagine you've used Wordtracker or similar service. Nonetheless, I thought I'd mention it since I've had good luck generating just as many clicks with $0.05 bids on less common words as I was bidding $.50 to $.75 on the popular keywords.

    Mark

    drworthen@drworthen.com
    http://www.MakeYourOwnWebsitesGuideAndDirectory.com

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