Cost of Clicks
Your cost is simply the accumulation of different actual CPC (which is different from bid CPC) or CPM for different keywords or websites.
What is the actual CPC? Here is how it works:
After we determine your ad rank, the AdWords Discounter calculates your actual CPC or CPM. This is the actual amount you pay to maintain your ad’s position above the next lower ad. Your actual CPC or CPM is never more than the maximum CPC or CPM bid you specify.
There is a minimum amount you must bid in order for your ad to show, which is set by your keyword’s Quality Score. And, your Quality Score is based on your keyword’s:
- Clickthrough rate (CTR) on Google
- The relevance of your ad text
- The relevance of your keyword
- The relevance of your landing page
So, you need to optimize your ad text and landing page for your keywords and increase your CTR. There are kinds of websites that will be penalized with low landing page quality scores:
- Data collection sites that offer free gifts, subscription services etc., in order to collect private information
- Arbitrage sites that are designed for the sole purpose of showing ads
- Malware sites that knowingly or unknowingly install software on a visitor’s computer
In addition, there are websites that are likely to merit low landing page quality scores:
- eBook sites that show frequent ads or install malware
- ‘Get rich quick’ sites
- Comparison shopping sites
- Travel aggregators
- Affiliates that don’t comply with Google’s affiliate guidelines
This is especially necessary if you are small business or individuals. You can learn more about daily budget here. Slowly increase your daily budget when you see continual increase in CPA.