Hi, I'm Mike Mancini from PPC Video Training.com,
and today we are going over cost per click
and explaining exactly what it is, how it works,
and how it can be very confusing.
When I do a search for roofers on Google,
there are a number of ads that come up at the top.
We have one here, and it's designated
by this green ad square.
Another ad.
And then down at the bottom, there are three more.
Now these ads are free to have right here.
This is not costing these companies any money.
However, once I click this ad, that company
will be charged a specific amount.
How much?
We don't know.
But it can get quite expensive.
But what will happen is, once I click one of these ads,
and I'm not going to do it because I don't wanna
falsely charge one of these companies,
but once I click one of these ads,
I will be taken to what's called the landing page,
or the page that they're directing us to.
Now depending on my experience,
if I click on this ad and I go to their landing page
and I don't see what I'm looking for right away
and I just click the back button, Google is recording that.
They are gonna say, you know what, they didn't find what
they're looking for and they're gonna make note of that.
And if that happens to a bunch of people,
then every time that somebody types in the word roofers
and somebody clicks on this company's ad,
they're gonna be charged more per click.
now, if I get to that landing page,
and I find what I'm looking for
and I fill out a form, or I take the next step
and I go to what's called a conversion,
then Google also records that
and they look at it and say, you know what,
people who are clicking this ad
are finding what they're looking for
and we're gonna actually charge this company less per click.
Now the cost per click will vary
based on quite a few factors.
Number one, it could be industry, real estate, credit cards,
insurance, are very expensive places to advertise.
Other things like T-shirts, certain types of clothing,
maybe tennis shoes, maybe those aren't
as much to advertise per click.
Now a lot of AdWords' users will log into their campaigns
and say, I keep getting these errors
below first page bid of $29.60.
Look at this one, $39.50.
I can't afford to spend that for one click.
Now what's happening there is Google
is telling us a few things.
Number one they're telling us it's an expensive keyword,
but they're also saying, listen,
the experience that you have when people click this keyword
may just not be what's working well.
It could be maybe the ad isn't very good.
Maybe the ad is misleading people to click on it
and they're not finding what they're looking for.
It could be the fact that once they click that ad,
they're being taken to a landing page that has nothing to do
with what they clicked on or it's very hard to find,
and people just aren't converting.
It could be a number of different things.
It could also be, this is for a roofing campaign.
These clicks are very expensive.
But one thing I wanna point out is
$29.60, just because you change your max cost per click
to that, that does not mean that every time that somebody
clicks it, that it's gonna cost you that amount.
Let me show you further proof of this.
In this particular ad group, this max cost per click
for this keyword runs $25.31,
but, we've only been paying $22.
Here's one for $22.77, but we've only been paying 15.
Now once again, somebody is looking at that, going,
how can companies afford to pay for that?
This is for a roofing campaign.
This is for a new one.
There's a lot of changes that need to be made
in this campaign to bring these costs down.
So we would expect that over the next couple of months
that we will be dropping this
average cost per click significantly.
But, already, in another ad group,
we know that they were paying approximately this per click.
So far we've gotten it down almost $7 a click.
So just because it's set at that max cost per click
does not mean that we will be charged that.
But the idea is to give the searcher
exactly what they're looking for.
Make sure that when somebody clicks your ad,
your ad is describing exactly what you want them to find
so that when they click on it,
they're taken to that exact page.
Don't just send them to the front page of your website.
Send them to the page that discusses
what your ad and what they keyword has to do with.
Thanks for watching the video.
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please let us know, we'd love to help.
Thanks.