Some of our site users especially those in Asia have been asking why is CPC Low in Some Countries than Others? Well, although the answer to that question is not a straightforward one, I’ll try to explain it in detail later on. So, that you know where to lay your hands on and make the most out of your CPC marketing plan.
And in order to answer the question of why is CPC Low in Some Countries, we are going to wrap ourselves around the Google AdSense Monetization Program. Now that, if you are a blogger or webmaster, then the first word that comes to your mind when someone speaks of monetization is Google AdSense.
Of course, Yes! There are several different ways of monetizing your website but AdSense is the first step taken by the majority of people. Whereby, as you already know, Google Adsense was launched in 2003 and over the years AdSense has moved a long way.
And eventually, things aren’t what they used to be 2-3 years ago. When the majority income stream for any blog would be advertisements from their service. For the last couple of months, many bloggers (especially tech bloggers) experienced a sudden decline in their Cost Per Click (CPC).
I often encounter lots of people asking me how to improve their CPC, but the reality is that I may not deliver a satisfactory answer to them. And as such, that’s why I decided to investigate this troublesome situation. To find out the exact problems Asian Bloggers are facing with Google Adsense.
Why is CPC Low in Some Countries?
Given that all factors are constant, it’s a known fact that not all countries pay the same cost-per-click (CPC) in Google Ads. Search volumes and the demand for certain target audiences differ per country. If at all, which can affect how much a brand would pay to run AdWords campaigns in specific countries.
According to a report by WordStream, the Average Cost Per Click in the U.S.A is between $1 and $2 on the Google Search network.
Well, the answer to that is so expounded to just finish in one article. But, I will try to boil everything down and then simplify things to more conclusive evidence. So, in order to come up with some answers, first, I opened up the Google Keyword Planner as my guide.
Thereafter, I searched for the exact phrase “Blogging Tips” for the USA, which showed me an average CPC of Rs. 84.3. And then, I did the same search with the country filter selected for India (An Asian country). Whereby, I found the CPC to be as low as Rs. 17.
This was a very shocking difference. Meaning that publishers getting Indian Ads for the keywords had the chance of getting almost 67 INR less each click. Then multiply it by 100 and you’re 6700 INR short, that too for this single keyword. I also found greater margins on other keywords. Then I asked myself this question:
“Why is there such a difference?”
To my surprise, I finally found the answer that was lying all over me. According to a study, Indians spend 43 Percent less money online than people from the USA. And herewith, I am not only talking about average consumers, bloggers, and webmasters. But also the online marketing budgets of small and large businesses.
In reality, Multi-National companies spend 30-40 percent less on online, and Inbound marketing in India. Compared to their branches in other countries. Thus, the main culprit behind it all is the lack of advertisers’ interest. As well as the non-awareness of the power of social media marketing.
With that in mind, I asked myself another question. Why do companies spend less here? In fact, they’re the world’s third-largest Internet consumers. Yet there’re countries like Russia, the UK, Australia paying better CPC’s. With lots of new online advertisers pouring in every day.
Surprisingly, upon doing some research, I found that Indians have a mentality of getting everything for free online. Perse, they opt for the most number of the contest, sweepstakes, free hosting services, etc. in the world. Therefore, there is not much scope of converting visitors into leads and eventually customers out there.
What is the Solution for CPC Low in Some Countries?
In short, this is the primary reason why their CPC’s are so low. Not to mention, companies do not mind spending millions more on Adsense Advertising. As long as they know they have a good ROI (Return of Investment). And as a result, the solution to this demanding problem is nothing but awareness.
Therefore, bloggers must promote and write about the power of Social Media, or even Internet Marketing. And how it can be used to convert visitors and lead customers much higher. Compared to traditional media like TV or Newspaper. Not only that, but people need new, easier, and safer methods and assurances for doing online payment.
For instance, banks need to be more flexible with services like PayPal or even WorldRemit, etc. So that more customers can opt-in for their service. But, until then, bloggers will struggle to find a sweet, reliable spot in the likes of the Asian Adsense Market.
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Alternatively, if you are relying on Adsense income, you should start targeting the US or the UK and any other high-end based organic traffic. And if are using high CPC words along with decent U.S traffic, you can expect more money/click on your AdSense ads.
In addition, another thing that you can do is pick that niche, where you can expect more buying capacity. For example, an age group between 18-24 in India will have less purchasing power. Whereas an age group of 25-40 will have more purchasing power.
And above all, you can also try SEMrush free trial coupons. And once you get one free account, you’ll be able to get a list of high CPC keywords for your niche. Not forgetting, you should also work on writing killer articles. As you target those keywords and try to rank as high as you could.
Even if this may be time-consuming, but by the end, if you manage to rank at the top for any high CPC keyword, with clever ad placement, you can make huge money from Adsense. Anyways, like this, there are many tricks that you can apply to increase your AdSense income too.
Does the Local Search Engines affect CPC?
Bad news for US search marketers is that they’re paying very near the top price for clicks, on average, by advertising in the United States. Only the United Arab Emirates averages higher CPCs than in the US, by 8%. As an example, have a look at the bottom countries in the full rankings Mark shared as detailed by the searchengineland.
You’ll notice that there are many countries in Eastern Europe and Russia with super-low CPCs. And this may be partly explained by the presence of local search engines. Like Yandex, which dominates the search market share in Russia. So, you should review this data, and consider entering new markets.
Related Topic: Countries with the Lowest CPC Costs in Google Ads
Keeping in mind that you should first understand which properties your users frequent online in that geographic region. The good news, of course, is that doing business in one of the highest CPC markets in the world means you might be surprised by the opportunities you have elsewhere.
In other words, when it comes to the question as to why you’ll see CPC Low in Some Countries, you should first understand the local search engines. And then as a marketer, target your PPC bids accordingly. Below are some of my 3 tips to help you target smarter with PPC in various countries:
Step One: Remember To Use Geo-Bid Modifiers
I’m always surprised to audit PPC campaigns targeting different countries that don’t leverage geo-bid modifiers. Geographical bid modifiers allow you to adjust your bids up or down by percentages of the base bid. Based on the different cities, regions, or countries you’re targeting.
Now, it’s pretty confusing to know what your initial bids should be. That first bid is really just a shot in the dark, so you can use our average CPC data above as a jumping-off point. For example, if you’re targeting searchers in the United Kingdom, and you can see that the average UK CPC is 13% lower than the US CPC, you can set your geo-bid modifier to -13%.
This tells AdWords to lower your bids in the UK by 13%. And of course, you’ll want to monitor your performance closely and adjust over time, but this can help you get started.
Step Two: Use The Dimensions Tab In AdWords
Additionally, you can use the Dimensions tab in AdWords to view performance by country. And once you’ve set up your initial geo-bid modifiers, you can examine the performance of your campaigns too. Based on geographic segmentation in the Dimensions tab.
To do this, all you’ll need to do is go to Dimensions > View: Geographic to view all campaign metrics based on geography. Notice how the CPC and CPA vary greatly depending on the country being targeted. Leverage this information to further refine your geographic bidding strategy.
Step Three: Reconsider Your Markets
Your analysis of which countries to focus on might warrant reconsideration with this new CPC data. You might have assumed that Eastern Europe, for example, just isn’t a good fit for your products. Simply, because your profit margins are, say, three times lower there.
However, if you can manage a CPA five times lower than your US acquisition cost, it could be worth it for you to expand into that market. Averages are just that — the average, not a definitive guide to what you should be paying in these different countries.
Fortunately, I hope they serve as a logical starting point for your international bids. And that perhaps you’ll be inspired to experiment in new countries. Now that you know how much cheaper it may be to advertise there.
In general, Cost per click (CPC) is a paid advertising metric that measures how much an advertiser pays for every click on their pay-per-click (PPC) ad. You can calculate CPC with a CPC calculator or the cost-per-click formula. Whereby, (Ad Rank of the Ad Below Yours / Your Quality Score) + $0.01 = CPC.
When you run PPC or social media campaigns, you’ll need to monitor all your critical metrics. Like cost per click to help you reach more customers for less money. Cost per click, which is how much you pay when someone clicks on your ad, is a critical digital marketing metric.
It provides insight into how much your business pays for someone to click on your ad. As well as giving you the motivation to lower your advertising CPC. Essentially, your CPC can serve as a thermometer for gauging the performance of your ads and your ad strategy.
If you have an inflated CPC, that means you probably have room for significant improvements. Like by improving your Quality Score or adapting your ad targeting. The average cost for Google Ads also called Google AdWords, is $1 to $2. If you’re advertising on the Google Display Network, the average CPC is less than $1.
Meanwhile, the average CPC for the Google Search Network is $1 to $2. So, having said that, what according to you is the reason behind low CPC for some Adsense publishers? Or rather, what is the Solution for CPC Low in Some Countries?
And what could we do to convert our low CPC posts into high CPC? You can share some of your thoughts and questions in the comments section. Or even Contact Us if you’ll need more additional support.