Pay Per Click campaign: Is it successful?

So i took the 60$ credit i have as Google AdWords credit and decided to start a mini-campaign to see how the Pay Per Click advertising model works. Here is the story:

I created a campaign for the Egyptian stock market section that we launched at Yellow Pages, i thought it could use some more traffic. I followed the guidelines and chosen my words and the minimum bidding CPC that google recommends for each word to appear in a good place in the search results page and in the Google partner network websites that are relevant to that topic. After this i specified the daily budget that i want which was 2$ per day that i reduce later to 1$ when i was about to run out of credit later

Here are some words i have chosen that were approved by google as good traffic words: Egyptian stock market, Egyptian stock market news, Egyptian Bursa, EGX30 prices, Talaat Mostafa Stocks, Mobinil Stocks, ….

CPC was pretty cheap, $0.05 for Egyptain Stock Market, some words were cheaper other words were more expensive…. I’m just gonna focus here on this word…

So everything was set and i got around 80 hits on the first day of campaign July 16th 2009.. The larger portion was coming from Google network website not from Google search results page but it doesn’t matter… very nice, i though i just put this to bed… but i was wrong.. look at the below:

On 17 July, hits dropped to 25, so i opened the control panel to see what was wrong, if found that google suggest me to change the CPC bid amount to $0.07 for Egyptain Stock Market instead of $0.05. I did that and here we go again, hits reached 80′s again.

On 21 July and 27 July, I had to re-adjust the CPC again and again until it reached $0.21 which seemed after this that it was not enough… I just started to give up, i can’t keep monitoring this way on aday to day basis… I have other more important stuff to do than adjusting some keywords CPC… I took a look after a while and i found that the CPC recommeneded by google Passed the $1.10 margin!!

I was paying 5 cents for a keyword and getting good traffic. Now i am paying 21 cents and hardly getting any traffic.. Then i was expected to pay one dollar for each click!! All the credit i have (60$) and was planning to use for one month would now evaporate in one day.

I don’t really understand the pattern, what happened during these 2 weeks that raised the bid amount for Egyptain Stock Market from 5 cents to 1 dollar?? is it really people paying more in that word suddenly, does it make any sense that no one was interested in this word at all and all in a sudden everyone wants it?? or was this some way Google AdWords drag their customers to invest more and more by offering words for a little price at the begining and then gradually increasing the value until it reaches the market amount? i don’t really know but i know 2 things for sure:

1.  I don’t like PPC model, too much complicated.
2. Normal end users and SME would find it extremely difficult to manage this on their own unless provided to them by an advertising agency that manages their account. Putting in mind also the special needs of customers in the middle east and that they would rather have someone do these things for them instead of doing it themselves because it is too “technical”. Self provisioning and PPC model might not be the best advertising solution for MEA region.

The Yellow Pages time-based contractual model is simple, efficient and easy. If you compare it to PPC model it is also much more cost-effective.