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Have you ever wondered why rates for pay per click keywords vary? Several factors influence rates including your bidding strategy, your competitors’ bidding strategies, keyword popularity and keyword performance.
Obviously, if you overbid for a keyword, you’ll pay more for it. However, if the keyword is hot, other bidders may outbid you, raising rates even further. Similarly, if no one wants a particular word, the price will go down. Some keywords aren’t popular because they simply don’t perform. Meanwhile keywords with phrases that convert such as “buy online” are more likely to be in demand; thus a higher price.
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