AdWords: Is This Train of Thinking Correct?

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Derek Pankaew

Derek Pankaew

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Mar 10, 2009
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Hey Guys,

I'm still pretty new to affiliate marketing. I'd love to get your advice on a campaign.

I have a campaign where I'm spending average $30 a day, making back about $75 a day. Netting maybe $50 a day.

My CTR on AdWords was about 3% to 4%. My average CPC was $0.27. My average ad position was 7th place.

After doing my math, I figured out my average EPC was $0.97 (my real EPC, not the one provided by the networks.)

So I decided to crank my bids up and go for 3rd place. I'm bidding about $.80 cents on some of my terms, on one term I'm bidding $1.37 (losing money.)

My CTRs are now 8% to 15%. I'm getting a very decent amount of traffic, but my ad spend has also increased a lot.

So the train of thinking is to crank up my bids, get as high a CTR as I can and gradually lower my bids as my CTR increases to hopefully keep a high position and high CTR, but lower my bids back to $.30 cents ish.

Is this train of thinking correct, or am I just wasting money?
 


Yes you are on the right track, although shoot for even better ctr's and rather than just lowering your bids straight back down to 30 cents, once you do attain better ctr's it's better to lower your bids to the "round off" of what google actually charges you per click what happens is (well normally if your doing things correctly) as you create better ads thus improving your ctr's you can lower your bids (to what google is charging you) and maintain your ad position's.

Put your profits back into this campaign, sounds like your onto a winner.
 
Definitely. Thanks guys =)

- Derek

P.S. Yesterday spent about $100, made back $128. I'm at dobule digit CTRs on all but one of my keywords. And Jesus Christ my traffic is expensive.
 
I've found that after bidding high enough for the 1-3 spots and getting a 10%+ CTR -- after a day or two, my CPCs just naturally fall by about 20%.
 
Well shit, I can't afford to pay CPCs of 20% less. I thought the discount would be more for good QS + CTR.

If I'm bidding a CPC of $0.90 right now, 20% less would be $0.72 CPC.

That's still too high ... IMO I'd be better off getting $0.27 clicks in 7th place than getting $0.72 CPC in 1-3rd palce.
 
your traffic is expensive? I spend $3/click and $300 just to test a campaign, and I usually need to do that a few times before I make a dime. I'm definitely on the wrong track...
 
kouvaritakis said:
Pankew, you sound like a fucking cheapskate to start playing the PPC game. Go back to the Warrior forum where you came from, you loser.
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Dude, shut the fuck up, really. He is asking for some tips, don't be a dick.

OP - I had a campaign where I was running about .75 cents per click at one point and the advertiser lowered the payout on the offer (it was the only advertiser for the product I was pushing) I was running, so I lowered my bids down rather than cutting the offer. I lowered the bids by half and my campaign was more profitable with a LOWER payout from the advertiser - because the .75 cents per click I was originally paying, was more than necessary.

Just keep testing, try new ads, etc.
 
kouvaritakis said:
Pankew, you sound like a fucking cheapskate to start playing the PPC game. Go back to the Warrior forum where you came from, you loser.
Click to expand...
I'm one of first people to jump on someone asking a dumbass DP-esque question...but this dude definitely isn't. He's asking good questions, so you go back to where you fucking came from.
 
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