It’s a question that’s asked more often then you might think. “What determines my pay-per-click keyword price?” The answer is most certainly not “Google” or another PPC search engine. Truth be told, this question is aptly answered by a quick lesson in PPC fundamentals. Your keyword price, or cost-per-click (CPC), is determined by a combination of your bidding strategy, keyword competition, Quality Score and a handful of other factors.
TIP: PPC terminology 101. While keyword price is a seemingly accurate descriptor, the more appropriate (and widely accepted) term is actually cost-per-click – aka CPC.
Which brings me to… the conclusion of today’s post! (OK, I promise I won’t use a gimic like that next time I write.) My goal for today’s post is that the next time you hear someone ask, “What determines my pay-per-click keyword price?” you’ll have some informed answers to share. Your keyword bids, Quality Score, click-through rates and even your competitors all play a role in determining your actual CPC – aka your keyword price.
(More: Revisiting the Economics of Quality Score: Why QS Is Up to 200% More Valuable in 2013)
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