What actually drives up CPC?

[duanesmith]

I understand that when someone has a high CTR, then in general, their CPC goes down and they rank higher...

So what actually cause some keywords to generally be higher than others? Is it the sheer number of searches that the masses do for a particular keyword... the number of people bidding on that keyword... or a combination of both?

Thanks,
Duane

[Walkman]

So what actually cause some keywords to generally be higher than others?
It's a combination of how popular the keyword is and how much money people are willing to bid on that keyword. I'm also thinking like this..

If I bid on a keyword for $0.05 and you bid on the same keyword for $1.50, then the bid would be $0.05 - $1.50.... now let's say someone wants to bid $2.00 for that keyword, then the bid would be $0.05 - $2.00. I'm not saying this is how it's done, but it makes me think so. I'll have to research that sometime.


Is it the sheer number of searches that the masses do for a particular keyword... the number of people bidding on that keyword... or a combination of both?
I believe it's both (my opinion).... but it comes down to this. In order for keywords to have any CPC associated to it, it is because many people have actually searched for that keyword/phrase in the search engines. The more a keyword/phrase is searched for the more popular it becomes, and at the same time, the bidding on that keyword could go up... but from what I've read, your CPC would go down more and more as you get many click-throughs...(I'm talking about Adwords).

Also take into consideration the length of time that keyword has been searched for on the Internet.


Kevin

[golden14]

Both is the answer - also supply and demand e.g. at Xmas , Xmas related keywords will pay out more

[Walkman]

Both is the answer - also supply and demand e.g. at Xmas , Xmas related keywords will pay out more
Although I'm still new to AdWords, I have my seo experience with me and it just seems so much like I've theorized.

Thanks for backing me up on this.


Kevin

[salma]

You now knowlge adword I did not knowlge for adword plz a bit information send me thanks you.

[Walkman]

You now knowlge adword I did not knowlge for adword plz a bit information send me thanks you.
If you have an AdSense account and you want to know more about AdWords, click on the link that says AdWords when you log into your Google account.


Kevin

[golden14]

If you try adwords beware of using it to drive traffic to a site solely made for adsense as I believe this is an area Google is tracking down on e.g. Arbitrage

[csbconnie]

I read some where that the cost is also related to the relavance of the keywords in the ad to the landing page. Does anyone know if that is true? I've haven't used adwords yet as I am still researching. Perhaps someone can recomend a good book.