Cost per click too high

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I've been using Google AdWords (and Overture) for a few months now and
noticed that the top keyword phrases that result in most traffic is also
quite expensive at about 60 cents per click. What is the general strategy to
reduce the cost per click (while maintaining quality traffic or even
increasing it)? I have eliminated the two most expensive keyword phrases and
added some alternative keywords that do not generate as much traffic but are
significantly lower in cost. But so far, the overall traffic has plunged. Is
there a better way to achieve a lower CPC while maintaining quality traffic?


Re: Cost per click too high

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I have been using adword for about 4 months. I have choosen the strategy of
paying only the minimum for clicks in most cases (.10 for overture and .05
for google). The results are that I suspect at least half of the clicks are
probably paid clickers or people clicking their own or competitors links,
but on balance the sales generated are more that the cost. Even though I
don't pay the most for the clicks, my daily money still gets spent every
day, even on Christmas Day(hmmm, that tells you something). To me paying the
most to get you ad first is not worth the price. Just my 5cents.

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