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Cpc: Why Is It Changing ?


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#1 reseo

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Posted 01 September 2014 - 11:04 PM

Hello Hello,

 

I was looking for a keyword a few month ago. Saved it in a file and I had a CPC from $ 11,92.

A couple month later, I make a fresh search and the CPC is at $ 0,25.

 

Is the CPC constantly changing on a daily base ?

Like stocks ?

 

Or what is it ?

 

And is it possible to look up a graph to see how the CPC for a specific keyword did in the past ?

Like with stocks ?

 

Totally confused now.. thx for any little help,

appreciate it !



#2 chrishirst

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Posted 02 September 2014 - 03:45 AM

Cpc: Why Is It Changing ?

Because it is "free market system" and is based on what advertisers are currently paying.

 

 

 



#3 reseo

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Posted 02 September 2014 - 10:58 AM

hmm.. yeah.. ok.. sorry about it.. I guess I wasn't clear enough.

 

I always see these two sides, and please correct me if I am wrong (I might be totally wrong):

 

Side #1: AdWords - Advertiser

Side #2: AdSense - Website Provider

 

 

Side #1: AdWords - Advertiser

ok.. it's a free market system - demand and supply. Makes sense. Depending on that Advertisers are willing to pay, the price can go up or down.

Basically, that's the raw model, right ? However google is doing the exact math behind, I don't really care.

 

But just to get the basics covered here... 

 

 

Side #2: AdSense - Website Provider

Ok, so this is the side where I could possible use AdSense on my page. I add the code and google will automatically place the ads on my page. Period.

 

But what about the CPC on this side ?

 

for instance.. let's do a simple example. Let's say I do have a keyword "what ever it is" that has a CPC from $1.

Now, let's further say I do create a webpage and the name of the URL contains the keyword "what ever it is" - and the content is all about the keyword "what ever it is".

 

If you have now AdSense on your page: Is the CPC still $1 ?

 

Or how do you know, and how could you possible calculate how much money you get for a click ?

 

 

Uff... so I am still totally confused...  have currently a big blackout about that.

 

Also, if the CPC of $1 is constantly changing, how can you know how much you'll get payed from AdSense ?

Or is it simple impossible to calculate upfront ?



#4 chrishirst

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Posted 02 September 2014 - 01:11 PM

 

Or is it simply impossible to calculate upfront ?

 

Yes.

 

The Adsense payment depends on what THAT particular advertiser paid, not what the "highest bid" was/is or what any other advertiser is paying.

 

That's where the Adsense beggars get it  wrong, they expect that the highest priced key words always pay the most per click-through.



#5 Jill

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Posted 02 September 2014 - 01:32 PM

Basically, you get whatever they give you. It's a tiny percentage of what they make.



#6 reseo

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Posted 02 September 2014 - 02:20 PM

hmm..  ok.. so there is no way to influence that ?

no way to see or check how much you would actually make ?

 

if you would focus on keywords with high CPC - that's bascially all crap, cause the high CPC can drop within a day ?

right ?

 

so the example I showed... I had a CPC on a keyword 2 or 3 month ago.. it was up to  $11,80

looking today, it dropped to $0,25...

 

pretty intense I would say so...

 

just curious why people can be successful with AdSense on their pages.. esepcially if it's impossible to calculate what you get per click anyways...



#7 chrishirst

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Posted 03 September 2014 - 06:26 AM

 

if you would focus on keywords with high CPC - that's bascially all crap, cause the high CPC can drop within a day ?

right ?

Yes and no .... it could "drop" within minutes.

 

 

Why do you think it is against the Adsense T&C to disclose or discuss individual words or phrases and the associated payment per click?

 

 

just curious why people can be successful with AdSense on their pages.. esepcially if it's impossible to calculate what you get per click anyways...

 

Errmmm? Maybe they lie or at least exaggerate somewhat.

 

Google have said that many of the "My Adsense cheque" pictures purported to be 'genuine' are far from that.

 

When you are "selling success" bull [img]http://www.highrankings.com/forum/style_images/poo.gif[/img] ALWAYS baffles brains



#8 Mikl

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Posted 03 September 2014 - 08:13 AM

just curious why people can be successful with AdSense on their pages.. esepcially if it's impossible to calculate what you get per click anyways...

 

Well, if you define "successful" as meaning that you earn more from AdSense than you pay out in web development and hosting costs, then of course it's possible to be successul. Many sites show a profit from AdSense.

 

Not being able to calculate the revenue per click is certainly an obstacle to that. In fact, it's worse than that. You can't even discover the revenue for any particular ad retrospectively. What you can do is to make an estimate of your total revenue based on past performance. It's not a very reliable way of going about things, given the volatility built into the system. But that doesn't mean you can't turn a profit.

 

if you would focus on keywords with high CPC - that's bascially all crap, cause the high CPC can drop within a day ?

 

 

Yes. And they can also go up from day to day.

 

The point is that you shouldn't be focusing on keywords with high CPC. In fact, you shouldn't be focusing on keywords at all.

 

Remember, there are three components to AdSense revenue:

 

revenue = traffic x click-through rate x CPC

 

A successful AdSense publisher will try to increase traffic (through SEO or other site promotion), and increase click-through rate (by optimising ad layouts, style, positioning, etc). And while you can't influence CPC, what you can do is to target your site at those sectors that you think will attract high CPC advertisers. Which sectors are those? It's your skill and judgement that will answer that question.

 

I think when you say that it is "bascially all crap", what you are really saying is that AdSense is not the get-rich-quick deal that some people seem to believe. But, although it's not the best business model ever, it's certainly possible to be successful with it.

 

Mike


Edited by Mikl, 03 September 2014 - 09:58 AM.

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#9 chrishirst

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Posted 03 September 2014 - 08:51 AM

Can I just point out a flaw in the thinking here?

 

Adsense was never meant for anyone fund their lifestyle or rely on as a "wage", it was introduced as a way that Google could say "Thank You" to people who provided useful content for others. Just because some found a way to manipulate it when it was first introduced does not mean that would continue ad infinitum. The 'bubble' has burst, just be grateful for the fact that you can get something for doing next to sweet FA, and stop whinging about how you can't plan your next holiday, paid for by Adsense clicks.



#10 Michael Martinez

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Posted 03 September 2014 - 09:12 AM

just curious why people can be successful with AdSense on their pages.. esepcially if it's impossible to calculate what you get per click anyways...

 

I know of some Websites that actually make thousands of dollars a month from AdSense (I have seen the accounts).  These sites are HUGE, well-linked, and they serve content that answers a LOT of questions.  They are doing it on volume because the click-through rates are terrible and the CPCs are so unpredictable.

 

I think it's great that some people can bring in a lot of money through AdSense but I have never met anyone actually doing it who was able to do it easily.  There is always something behind the story.  Maybe they have a lot of $100 Websites.  Maybe they have figured out an arbitrage strategy that gets them to a point where they can do without the arbitrage.  The stories are never the same.

 

Lead generation companies/specialists tend to make better money than passive advertising income sites but their marketing niches are fewer in number (because there just aren't that many companies willing to pay a lot of money for leads).  There is a reason why Yahoo! has struggled to grow its revenues despite having been one of the first big passive income success stories of the Internet.

 

I remember when thought a 40% CTR on banner advertising was tame.  Now they're happy if they can get up to 1% CTRs.  It's the same with contextual advertising like AdSense.  Webmasters have been complaining about declining revenues for years.



#11 torka

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Posted 03 September 2014 - 09:27 AM

Speaking personally, I figure if I make enough from AdSense to cover my hosting costs, I've had a good year. :)

 

(Granted, for me it's very passive... I don't at all work the system, just publish stuff I'm interested in and let the AdSense chips fall where they may. I could probably do better if I really worked it, but I don't see where the additional effort will pay off proportionally, so... :dntknw: )

 

--Torka :oldfogey:



#12 reseo

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Posted 03 September 2014 - 08:02 PM

ok.. that all speaks for itself.. but one thing that still is unsolved...   does anybody know what really influences the payment for a click ?

or is this just a big secret from google.. same secret like the google algo for ranking ?

 

 

Do you think that such factors listed below are making a difference in what you will get eventually payed ?
 
- How you rank with your page to a specific related Keyword or Topic ?
- Your PageRank
- Domain Authority
- Trust Flow and Citation Flow
- Backlink Profile
- etc.
 
 
Pretty much everything that would be a factor for higher rankings. Hmm.. but if that would be the case... does it mean, a webpage that has already a high PR, is ranking high, has a strong Domain Authority, etc... 
 
Such Pages get a higher payment if someone clicks an Ad ?
 
Hmm.. just thinking... just imagine of NASA would have AdSense... I can imagine that they would get a much higher payment then any low quality blog. Right ?
 
 
I mean... let's face it.. if I would run an advertising campaign.. and if I would have the chance to have an add on NASA - and I sell something related on my blog - rocket stuff, universe, space... what ever... 
that advertising must be expensive... if that's the case.. can we not say.. that in general.. The AdWords (Advertiser) CPC directly influences the AdSense CPC ?
 
And wouldn't that automatically mean:
If you have keywords that do have a high Advertiser CPC - you automatically should get a higher payment for an AdSense click ?
 
 
 
 
 
 
 

Edited by reseo, 03 September 2014 - 08:05 PM.


#13 Mikl

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Posted 04 September 2014 - 02:48 AM

No-one knows for sure. But I've never heard any suggestion that different publishers will earn different percentage amounts.

 

Obviously, the actual amount that the advertiser bids is independent of the publisher or the publisher's site. The only other variable is the percentage of the bid amount that Google gives to the publisher. As far as I know, that percentage is the same for everyone.

 

The only other factor is when an advertiser bids for ads on a specific site. In those cases, a high-quality site will potentially earn more than a run-of-the-mill one. But that's different from the scenario that you are talking about.

 

Mike



#14 chrishirst

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Posted 04 September 2014 - 06:38 AM

 

does anybody know what really influences the payment for a click ?

Google does and they don't tell ANYBODY

 

 

Hmm.. just thinking... just imagine of NASA would have AdSense... I can imagine that they would get a much higher payment then any low quality blog. Right ?
 

Wrong!

 

that advertising must be expensive... if that's the case.. can we not say.. that in general.. The AdWords (Advertiser) CPC directly influences the AdSense CPC ?

 

It is NOT WHERE the adverts are but WHO paid Google for it

And wouldn't that automatically mean:
If you have keywords that do have a high Advertiser CPC - you automatically should get a higher payment for an AdSense click ?
 

 

Which bit or

 

Basically, you get whatever they give you. It's a tiny percentage of what they make.

Are you not getting??

 

 

Let's do a Adsense "cliff notes" or "Dummies guide to Adsense";

 

Advertisers set the maximum that THEY want to pay for a click. Google rotates the adverts for that particular word or phrase. Sometimes the highest cost ads are shown and sometimes the lowest cost ones and ALL points in between are. This rotation is done across the WHOLE publisher network NOT on individual publisher URLs.


YOU get paid a percentage of whatever the cost was for the advert being shown.

 

Sometimes, the low cost advertiser gets lucky and their ads are displayed on a high traffic publisher URL that converts well, and they think ... WOW if that could happen for ten cents I wonder what I can get for a dollar, ... ...

 

 

 

 



#15 Michael Martinez

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Posted 04 September 2014 - 10:10 AM

What the publisher can do (that I know of) is:
  • Position ads where they are most likely to be clicked (modestly to minimize chances of being penalized)
  • Publish well-researched, in-depth content that provides unique value
  • Make the site targetable for advertisers
  • Make the site as fast to load and render as possible
None of which will in any way guarantee you make more money than just by randomly throwing up ads on mediocre content.  You may see better results following the above steps but there are so many variables (including visitor interests and needs) that no one can reliably predict how to do it the "best" way. There is NO "best" way to do it.
 
Some ways have proven to be more effective for some people than other ways, but no one has yet produced a universally usable magic formula for passive income success.

Edited by Michael Martinez, 04 September 2014 - 10:11 AM.





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