Question: Is CPC perceived value, or what companies actually are paying for those “awords”? If it’s perceived value, how is it calculated by Google?
Answer: The CPC (cost per click) in the Google keywords tool is the average cost per click of the current auction. It is NOT perceived value, but the actual bids. You can use it to see what your competitors are bidding on, and what they think is valuable.
That doesn’t mean that they are right. It’s just like a Church auction – sometimes the highest bid doesn’t go for the most valuable object. So, similarly, you are looking for ‘hidden values,’ which we discuss in the keywords class.
Got a question? Click this link to email Jason or call 888-993-1122. Dr. Jason McDonald is founder and Senior SEO / Social Media Director of the JM Internet Group. He teaches the SEO training classes for the group, and therefore provides most of the SEO tips for this blog. His goal with this blog is to provide an easy 'one-stop shop' for the busy marketer looking for tips, tricks, and secrets on how to get to the top of Google and Bing for free using proven SEO tactics. When not dreaming up SEO tips, Dr. McDonald lives in the San Francisco Bay Area with his wife, two dogs, a cat, four iguanas and twelve children (just kidding). Really you read down to the bio on this guy? Enjoy the blog.
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