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Confused about relevance of CPC in SEO

Posts: 16
Joined: 30 Aug 12

Confused about relevance of CPC in SEO


I understand that if a key word has a high cost per click (CPC) then more money has to be spend to advertise for that key word. But, I do not understand things listed below:

1. High CPC obviously means that Google or any other search engine charges advertisers a high amount per click for their advertisements. If that is the case, if I am able to rank my web page high in search results for a key word with high CPC, is there a chance for me to earn higher revenues from Google adsense?

2. Is CPC and competition in a niche related in any way? For example, if a key word has high CPC, does that mean that particular niche has high competition?

Can anyone please explain?

Thanks in advance.

Best Wishes,
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Posts: 475
Joined: 28 Apr 09

1. Possibly, although high competition does not always mean high traffic. If you get a lot of traffic to a high paying ad, then yes.

2. Generally yes, although there may be exceptions.
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#1. People sometimes try to offset their PPC costs by getting paid for showing AdSense ads. I don't think this usually works, because:
* Adsense pays so little
* Adsense requires a whole lot of traffic for any profit
* It's counterproductive to pay for AdWords so as to get people to view your offer, then show them a lot of Adsense ads that simply take them away from your offer. You'd make a lot more with successful sales of your product or service than by selling Adsense ads.
* Adsense ads tart up your pages and make them look cheap

#2. The amount you are asked to pay for clicks on a search phrase in Google AdWords does depend on what other bidders are willing to pay. So, if there are a lot of bidders and if they are willing to pay a high CPC, then your options are to:
* Also pay that high CPC
* Pay less for a lower page 1 position, or even a position on the 2nd or 3rd page
* Switch to a potentially less expensive ad network - perhaps doing banner ads on the image network.
* Pay less, while improving your page position by improving your ad copy, Google page quality score and CTR

Hope this helps...
_jim coe
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Posts: 16
Joined: 30 Aug 12
Thanks for your inputs, esolutions and Jim.
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Posts: 14
Joined: 02 Oct 12
CPC is a much more beneficial form of advertising than television advertising this is because a CPC

advertisement is only shown to people who are actively seeking what it is that you offer and so your

advertisement can be focused on these people unlike a television advertisement which has to focus on

a much wider range of people because you do not know who will see your advertisement and you cannot

focus it directly on your target market.
regards ,
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This topic was started on Oct 16, 2012 and has been closed due to inactivity. If you want to discuss this topic further, please create a new forum topic.