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Why Content Network CPC's so expensive?

posted Thu, Mar 11 2010 04:47AM
Level 3: Contributor
Joined: Aug 28 2009
Points: 1,765  |  Posts: 21

I put together a new Content network campaign.  I had to crank up my kw bids to $2.00 to get any meaningful impressions.  Most of my clicks cost me in the $1.25 - $1.75 range.

Yet when I lookup these same keywords in the Excel AC tool using the Keyword Monetization button for Content, the CPC's  are MUCH lower, always below  $.50
 
(and yet my own CTR's aren't that far off from the averages being shown in Excel)
 
Why are my Content Network CPC's so expensive?  

Not Answered This post has 0 verified answers | 5 Replies | 3 Followers

    posted Thu, Mar 11 2010 05:57AM
    Level 5: Champion
    Joined: Nov 20 2009
    Points: 72,240  |  Posts: 947

    Hello Honda750,

    Content ads uses the same bid structure as search ads. You can set different bid prices for content clicks by using the Advanced Bidding function at both the ad group and keyword levels. Please reference our Help topics for step-by-step instructions: Set bids for website placements and Set bids for keywords.

     When advertisers run content ads, adCenter will first apply the “broad” match bid. If there is not a broad match bid, then the “phrase match” bid is applied, then the “exact” match bid. Ads are matched to inventory based on keywords so that only relevant ads appear in the list of possible ads to display.

    The matched ads are then ranked using a formula of which bid price is only one factor. An ad that has a high predicted click-through rate and a competitive bid is most likely to display. Ads are selected for display using a weighted lottery, so although bidding does affect the likelihood of an ad appearing, it is not the sole determining factor. Here are some tips to get your content ads to display:

    • Make sure the ad’s keywords really reflect the ad’s content. Ads are penalized if their keywords are less relevant to the ad.
    • Bid competitively. To rank higher, your bid does need to reflect market rates for the keyword, though it needn’t be the absolute highest bid.
    • Target your ad specifically. The more specifically or narrowly you can target your ad, the less competition you have and the more likely your ad will be matched to clearly relevant inventory. Relevancy causes an ad to rank higher.
    • Create high-click through ads. Predicted click-through rate is a big factor in your ad’s ranking. Ads should be enticing and include a call to action, encouraging users to click.

    Thank you,
    Microsoft Advertising Support

    posted Thu, Mar 11 2010 08:24PM
    Level 3: Contributor
    Joined: Aug 28 2009
    Points: 1,765  |  Posts: 21

    When advertisers run content ads, adCenter will first apply the “broad” match bid. If there is not a broad match bid, then the “phrase match” bid is applied, then the “exact” match bid.

    OK thanks, I guess that ties into my other question about if AC content network uses "adgroup themes".  I guess it doesn't?  The systems looks at each keyword on an individual basis and applies the broad/phrase/exact criteria to the target content, irregardless of the other kw's in the adgroup?

    posted Sun, Mar 14 2010 09:28PM
    Level 1: Member
    Joined: Mar 15 2010
    Points: 105  |  Posts: 1

    They are so expensive because to many people like you will boost the rate up to 1.50 if everyone bid .05 then the price would be .05 my add's are set that way they do show not near as much as i would like becuase to many people ar bidding higher

    posted Tue, Mar 16 2010 04:07AM
    Level 3: Contributor
    Joined: Aug 28 2009
    Points: 1,765  |  Posts: 21

    Well, the purpose of bidding high at first is to establish a higher CTR early so that the system can reward you with cheaper clicks.   But my CPC's were still staying high (I paused my campaign)

    That's why I keep asking about the adgroup theming on the Content network.
     
    On the Search network, we want to use "long tail" kw's because obvious "short head" (opposite of long tail) kw's can get very expensive.
     
    But we want the opposite for the Content Network... we want "short head" kw's to match the Content of the websites they're on.  Problem is, are we being charged Search network rates for these kw's individually?  Or are the adgroups being grouped into "themes"?  
    posted Fri, Mar 19 2010 02:33PM
    Level 2: Participant
    Joined: Jan 19 2010
    Points: 415  |  Posts: 5

    Usually (Facebook, Affiliate, Google) content targeted advertising costs more by default. More targeted results on the other hand do make more sales.

    Tommi Heinonen

    internet mainoskampanja tuotekuvaaja hääkuvaus

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