Google’s Adword program is the favorite of low budget marketers because it allows pay per click bids as low as 5 cents per click.
With a 1% conversion ratio and 5 cent clicks, your customer acquisition cost is just $5.00 per customer.
If you have a product with a $10 profit per sale and a mechanism to sell additional products, that’s quite a cheap way to build a business!
But Google has thrown a monkey wrench into the works for many and they’re being accused of price gouging.
Their new “quality scoring” means that for popular keywords with high bids, your 5 cent bid may be history.
Each keyword now has a minimum bid that is based on the quality (also called Quality Score) of your keyword specific to your account. If your keyword or Ad Group’s maximum cost-per-click (CPC) meets the minimum bid, your keyword will be active and trigger ads. If it doesn’t, your keyword will be inactive and not trigger ads.
One solution is to find more related keywords is to use a service like WordTracker to uncover keywords related to your products and services that your competitors may have overlooked.
This may restore those 5 cent bids with a bit of effort.
Sign up for a test drive WordTracker and see for yourself!
From Google’s Help Center on “Why are my keywords being disabled?”
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