My experience is you have to keep tweeking with the click price. Be very selective with you key words by putting brackets around the text.
This way customers will only look for what you are selling or providing ie if a customer is looking for an electric blanket they do not want to sieve through a large amount of other types of blankets before they come to the electric ones.
These should be kept in mind while doing Pay Per Click...... coz its about money... an research
1.Advertise on a large number of relevant search phrases. Brainstorm beyond the first dozen terms that come to mind to describe your business. Advertise on the terms used to describe your products, the product names, product codes, and the questions a prospect might type into a search engine that your services answer, and more. Read our article, How to find good keywords5 for more on this.
2. Build unique ads for each search phrase. It takes a lot more time to write a unique ad for each search phrase relevant to your business rather than creating one ad for all of your search phrases, but the extra work will definitely be rewarded. Ads that are aligned with the corresponding search term receive more clicks, which will mean more targeted traffic, and in some cases paying less per click (on Google Adwords) due to the intricacies of how the advertising is priced.
3. Send visitors to the most appropriate page of your website. If you place an ad for a specific product within your online store, don't send visitors to your homepage and force them to dig for what they just searched. This will frustrate your visitors and increase the chance that they'll hit the dreaded Back button.
I've suspended my Googe AdWords campaign for the time being. The bidding war just got out of control for certain keyword phrases, rising from €0.50 to over €5.00 in th e space of a coupl of months. Decided to let the main competition have their bidding war battles, and when they're broke to resume my campaign.
Being responsible for half dozen or so Google Adwords campaigns for small to medium businesses, who advertise to both national and international audience, I find that majority of cost per click fall between €0.20 and €0.80, with good conversion rates.
It totally depends on what your industry is and what your ROI is (Obviously).
Recently, I have been spending $16 a click on a website I used Google website optimizer to optimize the landing page for a 20%+ conversion ratio.
It's an affiliate site selling a product for $299. I get $200 of that.
You do the math.
I have only recently gotten into affiliate marketing. I mush prefer low maintenance residual and passive revenue, but this is just too good to pass up. 2007 is the year of the affiliate for me. I'm going to pour my heart and soul into it.
Wow, $16 / click? That's way out of my league. Knowing my luck I'd get 500 clicks and 2 sales. That's great. Congratulations! I'd be concerned that a competitor would click the ad a bunch of times to off me...