Ad Cost Analysis
Cost Per Click (CPC) represents on average how much money an advertiser will have to spend for each click of an ad that is displayed on the search results page of Google for a specific keyword search. So if the cost to advertise on
Google search for the keyword phrase "buy domain name" is $3.00 per click, each time a person searches that phrase, sees my ad and clicks on it, I am charged on average $3.00. Now if that person sees my ad but does not click, I
am not charged anything. It is only the cost associated with a click on my ad for the specific keyword search. This method of advertising is based on a bidding system, where the advertise at the top of the page is willing to pay
the most amount of money per click. There are situations where the advertisers ad value may be high, which leads to them having to pay less per click, while still ranking above other advertisers that have higher bid amounts.
This has to do with how the ad is written, the performance of the ad (CTR = click thru ratio), the content of the landing the the ad leads to, and how the searcher engages the page once the ad is clicked and they hit the advertisers site. If the searcher engages the page and does not bounce away, this is a good indication to Google that he ad and landing page is good, so the Ad Value is increase, leading to a lower cost per click for the advertiser for that given keyword and ad combination.
The competition score of Ad Cost relates to how many advertisers are bidding on the same keywords and how much money is being spent. If there is a high amount of advertisers for a keyword and they are bidding aggressively amongst each other for the search traffic, then the Ad Competition will be high. If there are few advertisers, all of which are bidding low CPC amounts, then the ad competition will be low.
As a quick analysis of your advertising costs, we have calculated how much money it would cost on average to capture 1,000 visits to your site. This is for example purposes only.