AdWords - A little about CPC

And now I bring to you an experiment in CPC.

Here are the results of looking up my keywords from the previous post with a budget of $20/day targeted at the USA and Canada:

Keywords	Estimated Avg. CPC	Estimated Ad Positions	Estimated Clicks / Day	Estimated Cost / Day
internet marketing	$5.20 - $6.74	1 - 3	0 - 1	$4 - $6
search engine optimization	$7.05 - $9.65	1 - 3	0 - 1	$2 - $3
web site design	$4.78 - $6.22	1 - 3	0 - 1	$2 - $3
web traffic	$4.76 - $6.05	1 - 3	1 - 2	$6 - $8
website traffic	$4.26 - $5.48	1 - 3	0 - 1	$2 - $3

These results make it easy to figure out how much would be spent, and how much of a result I would get for my keywords. Now, say if I wanted to figure out my budget for my ad if I were to get 22 clicks per keyword a month. For that, you would add together each CPC result and multiply the result by the amount of clicks:

5.20 + 7.05 + 4.78 + 4.76 + 4.26 = 26.05 x 22 = $573.10
6.74 + 9.65 + 6.22 + 6.05 + 5.48 = 34.14 x 22 = $751.08

This leads to a budget of $573.10 - $751.08 for 22 days.

Now, people usually would like to get more for less. These results above were without an estimated CPC entered. What would happen if an estimated CPC of $1.50 were put in? As it turns out, the ad position number went up, and there were more estimated clicks.

AdWords ranks each ad based on a combination of the ad's CPC and the ad's click through rate. So, if a business created an irrelevant ad with a high CPC and it doesn't generate clicks, it's slowly moved to the bottom of the batch. This enabled business with a lower CPC to rank higher at less cost. So, the best combination would be a balanced CPC, along with top notch keywords. With the keywords themselves, don't use anything that the competition is using. Try to find the most unique but specific and popular keywords or phrases to gain the attention or the right audience, and get the most possible exposure. With a lot of thought and research, you'll be well on your way.