Pricing quirks across currencies

[robwatts]

I have a US dollar adwords account and a UK pounds adwords account.

Cos Im a curious kinda guy, I set up two campaigns, both target 'all countries'.

I targeted the word 'blog' just to see how much it would cost I set my bid to the minimum, just to see what was the 'going rate'.

In the US dollar version it said 'Increase quality or bid $0.05 to activate'

In my UK account for the same kw it said 'Increase quality or bid £0.17 to activate '

I refreshed both and played around a little but to no avail, the disparity remained.

17p is loosely equivalent to $0.30.

If the US price of $.05 is the correct price, then I would have expected the UK bid price to be around £.03

Anybody have any idea on why there's such a huge disparity?

[AussieWebmaster]

I will see what I can find out and post back ASAP.

[AussieWebmaster]

First question. Are these two campaigns in brand new accounts? If not the accounts themselves may have some history that is impacting the numbers.

If they are absolutely new accounts and new campaigns etc. then let me know and I can go further.

[robwatts]

Frank,

They are both old accounts. One is over 2 years old and the other about 18 months or so.

I thought that as far as minimum bids were concerned the price was the price was the price, regardless of account age or campaign.Or are you suggesting that established accounts get a more preferential bid rate? Would be a little outrageous if they did!

I don't think UK advertisers, or at least those with GBP accounts would be very happy to know that they were competing with one hand tied behind their backs, which is why I expect to be told its just a glitch.

I could of always asked the Googlies, but that wouldn't have stimulated much debate or interest ;).

Besides, I genuinely thought it was an interesting thing and wondered whether anyone else had noticed similar occurances.

[AussieWebmaster]

No older accounts will factor old CTRs for general applicable words etc. and work out a number... what I have yet to work out is if these prices go down if CTRs improve

[robwatts]

I just dont get how a bid price for the same word can vary so much.

I dont think it should. I thought it was a levelish playing field, at least at the bid level.

If you could elaborate on what you mean, or maybe get hold of a little more info, it would certainly help.

Actually, don't bend over backwards on my account Frank, i'm just curious and thought someone would have a quick response to hand.

I'll email them at some point and ask, unless of course, AWA pops by and can offer a view.

Cheers

[AdWordsRep]

I thought that as far as minimum bids were concerned the price was the price was the price, regardless of account age or campaign....
I just dont get how a bid price for the same word can vary so much.

I dont think it should. I thought it was a levelish playing field, at least at the bid level... I think I can clarify this for you robwatts.

A key point with the new keyword states and quality-based min bids is that the minimum bid for a keyword is not a fixed amount that applies across all accounts.

Rather, the minimum bid for a keyword is entirely dependent on how (and, in a very real sense, how well) the keyword is used in a particular account. It is not dependent on the age of the account, or any 'special status'.

To put it briefly, minimum bid depends on the keyword's quality score within the account - and is not a fixed amount.

I hope that helps. ;)

AWR

[robwatts]

Thanks for the response AWR. :)

Interesting...so the bottom line is that what one advertiser pays for a keyword, may not be the same as another, due to a range of other factors.

If you have some further info that expands on this at some point, Im sure lots of people might interested in how that works in reality, I certainly would be.

Cheers

Rob

[AussieWebmaster]

I think I can clarify this for you robwatts.

A key point with the new keyword states and quality-based min bids is that the minimum bid for a keyword is not a fixed amount that applies across all accounts.

Rather, the minimum bid for a keyword is entirely dependent on how (and, in a very real sense, how well) the keyword is used in a particular account. It is not dependent on the age of the account, or any 'special status'.

To put it briefly, minimum bid depends on the keyword's quality score within the account - and is not a fixed amount.

I hope that helps. ;)

AWR

I really am not impressed with the way this new thing is working.

[AdWordsRep]

Thanks for the response AWR.

Interesting...so the bottom line is that what one advertiser pays for a keyword, may not be the same as another, due to a range of other factors.

If you have some further info that expands on this at some point, Im sure lots of people might interested in how that works in reality, I certainly would be. I'd be happy to point you towards more info, robwatts. This topic is first mentioned on the page linked to (via "Learn more" link) from the UI message at the top of the Campaign Summary page in each account. Excerpting from that page, with bolding added:

How it works

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. More info on the Quality Score may be found here:

How is the Quality Score calculated?

https://adwords.google.com/support/bin/answer.py?answer=10215

And more info on the general topic of minimum bids can be found in the AdWords Help Center with a search on 'minimum bid':

https://adwords.google.com/support/bin/search.py?query=minimum+bid&Action.Search=Search+FAQs&type=f

AWR

[seobook]

I really am not impressed with the way this new thing is working.
Is it beefing up the price of the cheaper content clicks? Or what else is less than stellar?

[robwatts]

Thanks again AWR

I think I get it now, but it does all seem a little bit cludgy to me, at least in the sense of it doesn't exactly fly off the bat as sh** would a shovel, but I'm sure the penny will drop sooner or later .:)

Saunters off scratching head...