Page 1 of 2 12 LastLast
Results 1 to 40 of 49
  1. #1
    Join Date
    Aug 2004
    Posts
    1,461

    Adwords sold out ??

    With the per click prices I am paying on Adwords I used to be on around 7th postion like 4 months ago. Now I am on 12th position. I am still getting the same amount of visitors though but am concerned that if it goes on like that one day you have to pay those insane $5 per click prices if you want traffic from Adwords. What do you think ? Is Adwords sold out ?

  2. #2
    Join Date
    Oct 2002
    Location
    EU - east side
    Posts
    21,913
    I am still getting the same amount of visitors though but am concerned that if it goes on like that one day you have to pay those insane $5 per click prices if you want traffic from Adwords.
    Insane? Not if your customer's lifetime worth is high enough for you to afford to pay such advertising prices.

    Maybe advertising is not too expensive, maybe the profit margins are too small. Or maybe the sales closure rate is too low and you should work on the copy you're using...

    What do you think ? Is Adwords sold out ?
    If you look at it from Google's point of view, your post shows that Adwords is still in its blossoming period.
    Last edited by ldcdc; 04-06-2005 at 12:07 PM.

  3. #3
    Join Date
    Aug 2002
    Location
    London, UK
    Posts
    9,037
    $5/click is cheap. Its highly targetted visits and if your sites working correctly then conversion from adword clicks is great!

    $5/click is almost our MINIMUM spend, if you can spend $5-10 and gain 1 client out of it then thats very cheap and money well spent!
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.

  4. #4
    Join Date
    Oct 2002
    Location
    EU - east side
    Posts
    21,913

  5. #5
    Join Date
    Aug 2002
    Location
    London, UK
    Posts
    9,037
    If course... it also depends on the price you sell hosting for.
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.

  6. #6
    Join Date
    Aug 2004
    Posts
    1,461
    >$5/click is almost our MINIMUM spend, if you can spend $5-10
    >and gain 1 client out of it then thats very cheap and money well
    >spent!

    That means your conversion ratio is around 75%. Is that right ?

  7. #7
    Join Date
    Aug 2004
    Posts
    1,461
    I just looked at it again and found I mad a mistake while looking at my campaign I used to get a lot impressions for a certain keyword where I was ranking 3rd but now I am getting many impressions from another keyword where I am on 13th position. I though my ranking decreased because instead of looking at the ranking of the specific keyword I looked at the total ranking which decreased due to the fact that I was getting more traffic from another keyword where I am ranking lower...

    Puh... I was really scared

  8. #8
    $5 per click? - and then I wonder why I was getting zilch.

    Seriously how many times can you afford to pay $5 per click in each day? - I know google lets you set a limit but last time I tried google it ran up over $60 costs on a $2.50 per day budget - within 5 days I might add.

    Google really tried to google me out of my hard earned cash.

    -Turboz - I mean Googled Turboz.

  9. #9
    If google is taking $5 click they are ripping Adwords users and Adsense publishers off, Im droping Google from my site.
    • Max Wilson •

  10. #10
    Join Date
    Oct 2002
    Location
    EU - east side
    Posts
    21,913
    it also depends on the price you sell hosting for.
    Of course Matt.

    That means your conversion ratio is around 75%. Is that right ?
    I doubt it he gets that kind of conversion ratio. If he does, that must be some kind of a record. I think he meant that $5-10 per click is OK from his point of view.

  11. #11
    Join Date
    Aug 2002
    Location
    London, UK
    Posts
    9,037
    No no no, not 75% conversion.
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.

  12. #12
    Join Date
    Sep 2003
    Location
    New York
    Posts
    494
    Thomas,

    The fact that the click prices are growing is nothing new. As PPC advertising becomes more and more popular, companies jump on the bandwagon and obviously, the prices increase.

    The key to this is that the visitor that used to cost .50c a few years ago is now the exact the same quality as a click that costs $5. The difference, however, is that good advertisers have become a lot more meticulous about their advertising and constantly finetune their campaigns, their websites, their sales process, keywords, etc.

    Ultimately, we all have to accept that the prices will continue to increase, but as of now, Google AdWords and Overture still hold tremendous potential.

    There is a guy, called Kevin Gold, that wrote a 3-part article called:

    What to Do When Your Pay per Click Keyword Bids Increase?

    If you Google the term, you'll find it. It's a very good read.

    Matt, I also wanted to respond to your comment. Honestly speaking, I don't think that $5 per click is cheap. As long as it delivers conversions and brings you actual profit, it's a worthwhile expenditure, but I'd say that your ads are not performing up to their potential, if you pay so much.

    From my experience in the hosting market and the Pay Per Click advertising industry, I don't think that you should settle for $5 clicks.

    Hosting industry is a competitive one, but when it comes down to PPC, too many large companies simply aim for the top positions and plunk down as much money as it takes without carefully analyzing and tuning their campaigns. This is especially important on AdWords, because you can get higher positions and pay less than your competition, if your ads get a high CTR.

    Just my $0.02

    Boris
    - AdWatcher - From the founders of HostVoice, comes the first ad management and tracking service created with web hosts in mind. Track Google AdWords, Overture, hosting directories, local advertising, etc. Compatible with ModernBill, WHM AutoPilot, ClientExec, PayPal, 2CO and others.
    - Pay Per Click Marketing Book - Don't spend another dollar on PPC ads before you read this book.

  13. #13
    Join Date
    Feb 2002
    Location
    New York, NY
    Posts
    4,612
    Originally posted by WebDogPro
    If google is taking $5 click they are ripping Adwords users and Adsense publishers off, Im droping Google from my site.
    Google isn't ripping off anyone with $5 clicks. These keywords are auctioned off to the highest bidders, and lots of people are willing to pay $5/click, considering it to be cheap. If you pay $5 per click, and have a 10% conversion rate, you're only paying $50 per sale.
    Scott Burns, President
    BQ Internet Corporation
    Remote Rsync and FTP backup solutions
    *** http://www.bqbackup.com/ ***

  14. #14
    Originally posted by AdWatcher-Boris
    Matt, I also wanted to respond to your comment. Honestly speaking, I don't think that $5 per click is cheap. As long as it delivers conversions and brings you actual profit, it's a worthwhile expenditure, but I'd say that your ads are not performing up to their potential, if you pay so much.
    I agree. $5/click is great if you're really getting the ROI from it, but it's definitely possible to put together an effective campaign with a smaller CPC, and smaller companies should not be discouraged from competing on Adwords. I'm getting over 75,000 clicks/month from Adwords (for various sites--not all hosting related) and paying no more than an average of 8 cents per click. It's a great value but it does take some WORK
    www.HowToSellHosting.com - How to start a hosting business (free download)!
    www.10-Free-Ebooks.com - Download 10 ebooks with resale rights

  15. #15
    Join Date
    Aug 2004
    Posts
    1,461
    >paying no more than an average of 8 cents per click

    I used to have a campaign like that. I got it by accepting traffic from all the world (search + Adsense). I got a lot of cheap traffic but only few sales. Now I am only taking traffic from civilized countries and getting much better results although my CPC is around 0.30. I am paying less for the campaign and getting more sales.

  16. #16
    Join Date
    Aug 2004
    Posts
    1,461
    >If you pay $5 per click, and have a 10% conversion rate, you're
    >only paying $50 per sale.

    The problem is if you are a cheap host it will take you like a year to get your money back. And if you are a high price host you are not gonna get a 10% conversion ratio. See what I mean ?

    The only companies that can pay such rates are the big players who only buy that space to prevent their competition from becoming larger.

  17. #17
    Join Date
    Sep 2003
    Location
    New York
    Posts
    494
    Originally posted by thomas.smith
    >If you pay $5 per click, and have a 10% conversion rate, you're
    >only paying $50 per sale.

    The problem is if you are a cheap host it will take you like a year to get your money back. And if you are a high price host you are not gonna get a 10% conversion ratio. See what I mean ?

    The only companies that can pay such rates are the big players who only buy that space to prevent their competition from becoming larger.
    Not necessarily. It depends on the keywords you're going after.

    If you're a high priced host, "cheap web hosting" is not the right keyword for you no matter how much you're paying per click.

    Boris
    - AdWatcher - From the founders of HostVoice, comes the first ad management and tracking service created with web hosts in mind. Track Google AdWords, Overture, hosting directories, local advertising, etc. Compatible with ModernBill, WHM AutoPilot, ClientExec, PayPal, 2CO and others.
    - Pay Per Click Marketing Book - Don't spend another dollar on PPC ads before you read this book.

  18. #18
    Join Date
    Jun 2001
    Location
    Denver, CO
    Posts
    3,301
    10% conversion rate is extremely high.
    Jay Sudowski // Handy Networks LLC // Co-Founder & CTO
    AS30475 - Level(3), HE, Telia, XO and Cogent. Noction optimized network.
    Offering Dedicated Server and Colocation Hosting from our SSAE 16 SOC 2, Type 2 Certified Data Center.
    Current specials here. Check them out.

  19. #19
    Originally posted by thomas.smith
    >paying no more than an average of 8 cents per click

    I used to have a campaign like that. I got it by accepting traffic from all the world (search + Adsense). I got a lot of cheap traffic but only few sales. Now I am only taking traffic from civilized countries and getting much better results although my CPC is around 0.30. I am paying less for the campaign and getting more sales.
    Yup it's all about optimization. It takes a little work to figure out what works the best for each situation.
    www.HowToSellHosting.com - How to start a hosting business (free download)!
    www.10-Free-Ebooks.com - Download 10 ebooks with resale rights

  20. #20
    Join Date
    Oct 2002
    Location
    EU - east side
    Posts
    21,913
    10% conversion rate is extremely high.
    I know it for a fact that 5% is doable though, which will make a sale cost $100 (with a $5 per click price). For some it might sound very high, but depending on various factors it can be quite profitable.

  21. #21
    Join Date
    Aug 2004
    Posts
    1,461
    Originally posted by ldcdc
    I know it for a fact that 5% is doable though, which will make a sale cost $100 (with a $5 per click price). For some it might sound very high, but depending on various factors it can be quite profitable.
    20% is possible for budget hosts but not for hosts with higher prices. Higher priced hosts might be getting around 2% pax which would make it 250 Dollar per sale. And that doesn`t pay off. I do not think $5 per click advertising can pay off for anyone. It is only good for large hosts to make sure that smaller hosts won`t be able to establish.

  22. #22
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    Originally posted by UH-Matt
    $5/click is cheap. Its highly targetted visits and if your sites working correctly then conversion from adword clicks is great!
    That's very dependant on your keywords etc, and how targetted they are to your service. I remember the days on goto.com when great keywords were a few cents per click. Ahhh, good times.
    • AussieHost.com • Aussie Bob, host since 2001 •
    • Host Multiple Domains on Fast Australian Servers!! •

  23. #23
    Join Date
    Feb 2004
    Location
    NYC
    Posts
    204
    How does one determine your conversion ratio? What is the equation?

  24. #24
    Join Date
    Nov 2000
    Location
    UK
    Posts
    3,507
    (Sales-From-Adwords-Referrers (can be cookie tracked for return visitors) / Adwords Clicks) * 100 = Percentage Conversion ratio for adwords
    MattF - Since the start... twitter / github

  25. #25
    Originally posted by angelic81
    How does one determine your conversion ratio? What is the equation?
    Conversion ratio is most commonly measured in terms of how many unique visitors it takes to make 1 sale. e.g. 1% = 1 sale from 100 unique visitors.

    A better measure is ROI (Return on Investment) which tells you whether you made or lost money on the ad.
    Web Hosting Stuff - Over 10,000+ Hosting Companies Listed
    http://www.webhostingstuff.com

  26. #26
    Join Date
    Aug 2004
    Location
    Zurich, Switzerland
    Posts
    770
    For hosts charging $20+ for the starter plan and offering even more expensive ones, even 250 bucks might be OK for a new customer if their internal numbers show that the average customers stays more than a year with them.

    Originally posted by thomas.smith
    Now I am only taking traffic from civilized countries
    I didn't know there are uncivilized countries on this planet...

  27. #27
    Join Date
    Aug 2004
    Posts
    1,461
    >I didn't know there are uncivilized countries on this planet...

    Oh come on... There are countries without houses and streets and people's main business is to rob neighbour villages with machine guns. Do you call that civilized ?

  28. #28
    Join Date
    Aug 2004
    Posts
    1,461

  29. #29
    Join Date
    Aug 2004
    Location
    Zurich, Switzerland
    Posts
    770

    Thumbs down

    I think it's time you look up the word "civilized" in an encyclopedia...

  30. #30
    Join Date
    Aug 2004
    Posts
    1,461
    Google says "civilized: having a high state of culture and development both social and technological" and that:
    http://www.gendarmerie.gv.at/Image/a...nda%2005_a.jpg

    ...does not seem to be very highly developed. LOL !

  31. #31
    Join Date
    Aug 2004
    Location
    Zurich, Switzerland
    Posts
    770
    http://www.m-w.com/cgi-bin/dictionar...y&va=civilized

    The Western world might be highly developed in a technical sense (though we're cavemen compared to countries like Japan or South Korea), but our society is definitely not of a high state... and as for culture, using Google to look up a dictionary word is anything but high culture.

    As for the images you linked to, you obviously mix up the words "uncivilized" and "poor". There are countless millions of people in the Western world too who live under similar primitive conditions - and I'm not talking about immigrants from the third world.

  32. #32
    Join Date
    Aug 2004
    Posts
    1,461
    >but our society is definitely not of a high state...

    Though there is no socienty that is of a higher state than ours.

    >and as for culture, using Google to look up a dictionary word is
    >anything but high culture.

    Very funny...

    >to cause to develop out of a primitive state

    So you would say that the people living on that hill http://www.gendarmerie.gv.at/Image/a...nda%2005_a.jpg did develop out of a primitive state ?

  33. #33
    Join Date
    Aug 2004
    Location
    Zurich, Switzerland
    Posts
    770
    As soon as human beings build their own shelters, make their own tools, and have any kind of society, they are civilized.

    As soon as they can communicate abstract concepts with each other, in no matter what way (spoken language, drawings, writing etc.), they have culture.

    Regarding technological advances, any society using machines is a technological society - and machines are not only autos and computers. The simplest device that allows people to lift weights easier is already a machine and e.g. a windmill is already a complex machine.

    As for our society being of the highest state, if you'd take the time to study history you'd realize on your own how untrue this statement is.


    You are free to refute any of the above statements, but as far as I care the only thing you can prove with that is that your own education is more than sketchy and might not even reach the level of the very "uncivilized" people you so freely criticize...

  34. #34
    Join Date
    Aug 2004
    Location
    Zurich, Switzerland
    Posts
    770
    I took a closer look at the image you quoted several times... FYI, Rwanda went through years of civil war with hundreds of thousands of people killed, millions losing everything they owned. The picture you are laughing so loudly about was most probably taken at a refugee camp where people land who've lost everything they've ever owned.

    Taking a similar example, were Germans uncivilized in 1945? Most of the country didn't look much better than the poorest 3rd world country and millions lived under worse conditions than even those people on your pictures...

  35. #35
    Join Date
    Aug 2004
    Posts
    1,461
    >As soon as human beings build their own shelters, make their
    >own tools, and have any kind of society, they are civilized.

    The definition on the site you mentioned doesn`t say civilized = anyone who is able to say "buggabugga" and carry a stick LOL. It requires that people "develop out of a primitive state". And primitive means simple. Compared to the western civilization Ruanda is very very simple

    >As for our society being of the highest state, if you'd take the
    >time to study history you'd realize on your own how untrue this
    >statement is.

    I don`t think so. It depends on the definition of the word "high" what you consider a high state.

    >You are free to refute any of the above statements, but as far
    >as I care the only thing you can prove with that is that your own
    >education is more than sketchy and might not even reach the
    >level of the very "uncivilized" people you so freely criticize...

    I went to university for two and a half years. I know someone who married a woman from Thailand and she doesn`t even know that 2 and 3 makes 5. Now the guys on that hill probably do not even know what numbers are. LOL. I do not think their education is better than mine. You just don't like my attitude. But that has nothing to do with education.

  36. #36
    Join Date
    Oct 2002
    Location
    EU - east side
    Posts
    21,913
    I think this is a discussion for the lounge.

  37. #37
    Join Date
    Aug 2002
    Location
    London, UK
    Posts
    9,037
    Ive never looked at our rate of return.

    We work out each month what £ note value we want to spend on each advertising opportunity, and do it. As long as customers still come in from that advertising source, we continue as we are.

    Maybe some analysis would show a higher or lower rate of return than I thought... but that doesnt bother me... As long as we can afford our current advertising budget, and are happy with our daily signup figures, then who cares
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.

  38. #38
    Join Date
    Aug 2004
    Location
    Zurich, Switzerland
    Posts
    770
    Originally posted by thomas.smith
    You just don't like my attitude.
    You're right on that one, I definitely don't like your attitude... sounds too much like the racial superiority stuff that should've died out 60 years ago after the whole world could see where it leads.


    But you're right Dan, sorry for taking this thread OT. Will stop now.

  39. #39
    Join Date
    Aug 2004
    Posts
    1,461
    >Taking a similar example, were Germans uncivilized in 1945?
    >Most of the country didn't look much better than the poorest 3rd
    >world country and millions lived under worse conditions than
    >even those people on your pictures...

    Destroying houses is one thing. Destroying technology, knowlege, potential and human developement is another thing. In Ruanda there never was any serious knowledge or human developement. You can't compare this to Germany. If you think the picture I posted does not represent Ruanda then have a look at other images. You won't find a lot of developement there

  40. #40
    Join Date
    Aug 2004
    Posts
    1,461
    >You're right on that one, I definitely don't like your attitude...
    >sounds too much like the racial superiority stuff that should've
    >died out 60 years ago after the whole world could see where it
    >leads.

    I'm not saying their genetic code is bad. I am saying they are not civilized. And that is a fact.

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •