Gigantic First Page Bid Estimates

[metaray]

Hey,

Do people actually pay $65 per click for various keywords? Some of the keywords related to my niche are going for > $50 to be on the first page. Or perhaps I am not understanding something correctly?

Any insight would be appreciated, thanks!

[Dunny]

Too be honest, some of the keywords really are that much. Check this link out:

SpyFu - Keywords with Highest Cost Per Click

And I can vouch for that list as some of our present clients are using words on that list.

[Kloans]

Too be honest, some of the keywords really are that much. Check this link out:

SpyFu - Keywords with Highest Cost Per Click

And I can vouch for that list as some of our present clients are using words on that list.

That is crazy there are a few words on there I could go after for my site.

[Toni Anicic]

Those on top don't actually pay as much as the first page bid estimate as the price you pay really depends on many factors such as keyword and landing page relevance, text and keyword relevance, your campaign CTR, your overall CTR and so on...

[flhu]

Interesting info can be gleamed from this... For instance, "purchase structured settlements" is $53.48.
100 clicks would be $5,348... now since most sites see about a 2.5-3.5% conversion, or roughly 3 leads per 100, the cost of a conversion would approximately be $1600. I can see not flinching at devoting 15% of profits to advertising... so if they're buying a $42,000 structured settlement for $30,000 up-front cash (and I imagine that settlement would be one of the smaller one's they would deal with); well, there you go.

Doesn't seem too weird at all.

[scott5430]

interesting thread... didn't realize that some companies are (potentially) paying that much for bids. you would think that they would put some (most) of that money into SEO for those terms... you can "buy" a lot of SEO love for that kind of money.

[leto123]

based on that list it looks like lawyers must make a lot off of dui clients. funny

[SEObyCanz]

That spyfu page was interesting, and good thread,

About the DUI lawyers making a lot of money, perhaps it's more that google things anything to do with lawyers should pay more no matter what the phrase is... hehehe...

Funny thing is i did a few of those searches, and it wouldn't be too much of a drama to rule the first page of google for those high priced PPC phrases in organic results. Certainly less than a years PPC budget.

[deepsand]

In addition to the Quality factors mentioned above by Toni Anicic , it is important to remember that the maximum price actually paid is not your bid, but the higher of your bid and 1 cent above the 2nd highest bidder.

So, if the 1st and 2nd place bids are $65 and $50 respectively, the high bidder will not pay more than $50.01. His $65 bid simply makes it more costly for anyone else get the 1st display slot.

[ogletreeseo]

Yeah I used to manage a campaign where all bids were set at $100. We paid anywhere from $30-$75 a click.