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 adsthat 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 thesecompanies any money. However, once I clickthis 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, onceI click one of these ads, and I’m not going to doit 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’scalled the landing page, or the page that they’re directing us to. 

.Now depending on my experience, if I click on this ad andI go to their landing page and I don’t see what I’mlooking for right away and I just click the backbutton, Google is recording that. They are gonna say, you knowwhat, they didn’t find what they’re looking for and they’regonna make note of that. And if that happens to a bunch of people, then every time that somebodytypes 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 itand say, you know what, people who are clicking this ad are finding what they’re looking for and we’re gonna actually chargethis 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 expensiveplaces 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’ userswill 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 spendthat for one click. Now what’s happening there is Google is telling us a few things. Number one they’re tellingus it’s an expensive keyword, but they’re also saying, listen, the experience that you havewhen 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 misleadingpeople to click on it and they’re not findingwhat they’re looking for. It could be the fact thatonce they click that ad, they’re being taken to a landingpage that has nothing to do with what they clicked onor 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 isfor a roofing campaign. These clicks are very expensive. But one thing I wanna point out is $29.60, just because youchange your max cost per click to that, that does not meanthat every time that somebody clicks it, that it’s gonnacost 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, butwe’ve only been paying 15.

 Now once again, somebodyis 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 changesthat need to be made in this campaign tobring these costs down. So we would expect that overthe 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 payingapproximately this per click. So far we’ve gotten itdown almost $7 a click. So just because it’s setat that max cost per click does not mean that wewill 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 thefront page of your website. Send them to the page that discusses what your ad and what theykeyword has to do with.