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Opinion: Why Google Adsense India has such Low CPC

Opinion: Why Google Adsense India has such Low CPC

If you are a blogger or webmaster then the first word that comes to your mind when someone speaks of monetization is Google Adsense. Although there are several different ways of monetizing your website but Adsense is the first step taken by majority people. Google Adsense was launched in 2003 and over the years Adsense moved a long way. Things are not what it 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 am myself confused and fail to deliver a satisfactory answer to them. So, around a month ago I decided to investigate this troublesome situation and find out the exact problems Indian Bloggers are facing with Google Adsense.

Why LOW CPC ads for Indian Adsense Publishers?

First, I opened up Google Keywords Tools and searched for the exact phrase “Blogging Tips” for USA which showed me an average CPC of Rs. 84.3 . Upon doing the exact same search with country filter selected for India I found the CPC to be as low as Rs. 17. It was a shocking difference which means that publishers getting Indian Ads for the keywords have the chance of getting almost 67 INR less each click. Multiply it by 100 and you are 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?”

I finally found my answer which was lying all over myself. According to a study Indians spend 43 Percent less money online than people from USA. Here I am not only taking about average consumers, bloggers, webmasters but also online marketing budgets of small and large business. Multi National companies spend 30-40 percent less on online and Inbound marketing in India compared to their branches in other countries. This lack of advertiser interest and non-awareness of the power of social media marketing is the main culprit behind the lower CPC in our country.

Here I’m performing Keyword research using Google Adword tool, and for the same Keyword I’m targeting two different country “U.S” and “India”, and you can notice the difference in Approx. CPC cost.

Blogging tips keyword USA price

Blogging Tips Keyword CPC for USA

Indian Adsense Low CPC

Blogging Tips Keyword CPC for India

Free Stuff and Purchasing power = low CPC:

Now I asked myself another question. Why do companies spend less here? We are the world’s third largest internet consumer yet there are countries like Russia, UK, Australia paying better CPC’s with lots of new online advertiser pouring in every day. Upon doing some research I found that Indians have a mentality of getting everything for free online.

We opt for the most number of 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. This is the primary reason why our CPC’s are so low. Companies does not mind spending million more in Adsense Advertising when they know they have a good ROI (Return of Investment).

The solution to this demanding problem is nothing but awareness. We as bloggers must promote and write about the power of Social Media, Internet Marketing and how it can be used to convert visitors higher compared to traditional media like TV or Newspaper.

People need new, easier and safer methods and assurances for doing online payment. Banks need to be flexible with services like PayPal so that more customers can opt in for their service. Until then, we as bloggers will struggle to find a sweet reliable spot in the Indian Adsense Market.

Alternatively, if you are relying on Adsense income, you should start targeting U.S 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. Another thing which you can do is pick those niche, where you can expect more buying capacity. For example, an age group between 18-24 in India will have less purchasing power, where as an age group of 25-40 will have more purchasing power.

You can also try SEMRUSh free coupon, and get one free account and get a list of high CPC keywords for your niche. Now, work on writing killer articles targeting those keywords and try to rank as high as you could. 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 which we can apply to increase adsense income, but for now let’s stick to our topic for discussion here.

What according to you is the reason behind low CPC for Indian Adsense publishers? And what we could do to convert our low CPC posts into high CPC?

 

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Article by rahul247rocks

Rahul has written 3 articles.

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{ 20 comments… add one }

  • Zaman

    To all the webmasters who are worried about building websites for Indian websites vs US audiences, I would like to give a small observation from my own experience. I have gone through this situation of Indian vs Western traffic dilemma around 4-5 years ago and went on to concentrate on mainly Western traffic and built websites to cater to the US/Europe/English audience. But with time I have realized that you must build sites which “interest you” and not sites only keeping in mind the CPC or traffic. Because unless you are genuinely interested in the website topic, you would not able to sustain the quality of content in the website for long and if you do not do so, it will lead to downfall of the website in the long run. And if you are not genuinely interested in the niche, you would not update it that often and the quality of articles or content might not be upto the mark. So, it will be a loss-loss situation in any case. But if you are genuinely interested and know well even in topics related to India, build websites on those as you would end up delivering quality content which will interest your readers and would result in higher volume of traffic and thereby higher revenue in the long run. So, work on the content first and revenue would automatically follow. At the same time, be a bit smart too and “diversify”. Never put all your apples in one basket. :)

    Reply
  • Darshit Mulani

    According to a report till 2020 India will be second largest place for E-commerce so it’s a good news but now for the time I am happy that my most of the traffic is coming from US.

    Reply
  • Edson Hale

    Hey Rahul you are right we should also see the buying capacity of the audience of a niche before selecting it but we should not ignore our passion while selecting a niche; if we enjoy a niche we should go for it either it bring organic traffic from US or from any poor country because eventually you will succeed in it if you really enjoy your niche.

    Reply
  • Paresh

    So! It doesn’t t matter the blogger is in India or in US its the visitor who matters, If you build a US based visitors then there is a chance to get more out of every click, Am I right?
    My question- We Indians opt for check in (Rs) as a currency; does it effect our earnings.

    Reply
  • gaurav

    exactly…adsense cpc in india is very very less as compared to US traffic….My highest cpc From US is 2.40 $ while in india average cpc remains 0.05$ ……

    Reply
  • gaurav

    nice post admin..really there is big difference between CPC in india and USA .and according to you Rs84 .amazing..i am still getting very low CPC …

    Reply
  • Manjinder Singh

    so how should be the things done… i means if we go with high cpc there is less chance to score better in seo as thigh cpc have high compitition … where as if we go on low cpc then we can score better but with less payouts … so can any one please tell me how to maintain the balance with cpc and seo …

    and how should be the ad placements on the website does that matters……?

    Reply
  • Rajneesh

    Yes its true that there is a huge difference in CPC value for India and US!! And I was surprised to note that all my keywords were having cpc less than 34 cents when location was set India, but they shoots up to even $20 when location was set as US.

    My only question is that, if we want to target US traffic, do we need to get our hosting also done in US and not in India? As Google search results changes drastically location wise and preference is given to local hosts in a country while ranking in search results.

    Reply
    • Zaman

      I came to this article from Google while searching for the current state of CPC in Adsense India. I am an Indian and I had stopped targeting Indian traffic for several years now due to the low CPCs and had instead concentrated on organic US traffic by building sites relevant to worldwide and especially US traffic. I had noticed a few good .in domains and got some good ideas for building a website on one of them with content that might also interest me. So, was just checking but thought of removing your confusion or rather myth about hosting at the same time.

      Though it is true that hosting often effects the rankings to a slight extent but it is not a hard and fast rule. I have had dozens of sites hosted in US which ranked well in India in the past and vice versa. And some sites rank well both in India and US and nearly at the same SERP rankings. If you do not use a generic domain extension like com or net, then the country TLD affects it to some extent. But even that is not a hard and fast rule and there are many exceptions there too. The most important criteria for local rankings which I have seen and realized in all these years of being a webmaster is that Google or for that matter any SE will rank your website after checking the content of your website. If the website content makes sense (is relevant) for a particular country or region or even a city (and is unique and not duplicate content), it has a very high chance of ranking well in that local search rankings. And if the content is very good and universal, it has chances of ranking well worldwide be it google.com, google.co.uk or google.co.in or for that region any other localized search engine. So, think more about the content rather than the hosting. And just so you know, unless you own your own server here in India, most quality Indian
      (except a few exceptions like Hostgator India) hosting companies host their website in US or Europe in reality as the bandwidth and hardware prices are a lot lesser there. So, do not worry so much about the hosting part. I own a dedicated server in Europe and a couple of unlimited/high end reseller hosting accounts at several top US webhosting companies and so, you can be sure that I know a bit about both website ranking and hosting effect on SEO to bust the myth.

      Reply
  • Jotaeme

    The winner is US… definitely. I got some expensive CPC for a single ad click $295. It is reported here: http://www.plandinero.com/mi-cpc-mas-caro-en-google-adsense/ (sorry it is in Spanish).

    Reply
  • sony

    can we know what is keyword cpc ? which keyword is paying how much ?

    Reply
    • Rahul

      Go to Google Keywords Tools and then search for a keyword, select India as Country and then the CPC that you see is what is payed by the advertiser. You get around 70 Percent of that.

      Reply
  • Nahid

    I have a US based traffic on my site and now I feel I should tune in a little bit.

    Thanks nice post

    Reply
  • dr anand

    Yeah I too have been using Adsense for my site http://arounddelhi.com and the returns were so dismal that I slowly removed most of them. Even for adwords the average cost that I pay per click is less than Rs 10.00 so that expalins the low cpc. As our clients are maily Indian so we can not concentrate on US clients for better cpc.
    Thanks,
    R.anand

    Reply
  • Sanjib Saha

    Even i did not knew the reason behind the low CPC rate. One thing that has amazed me more that India, being the 3rd largest Internet consumer also, the condition is not too good looking. Well i don’t see any solution to it. May be in future the Indian CPC rate may increase.

    Reply
  • rakesh kumar

    The main idea you have given here us to increase the CPC is targetted US keywords. If we are able to target that group only then we can increase our CTR. Thanks Rahul for this useful article.

    Reply
  • Avi

    hmm!! nice point is focused in this article. India seems to be backward in Online Marketing than countries like U.S. From now I will always target US based traffic, as you suggested.

    Reply
  • Shalu Sharma

    You are right on this. I was wondering why adsense from India had low cpc. Now I know. As a matter of fact, it is so low that sometime I just wonder if its all worth it.

    Reply
    • Rahul

      As mentioned in the last paragraph of the article you need to concentrate on getting organic USA traffic. Although content is the key here but I found one superb way to target visitors from countries like UK, USA, Ireland etc. is to start a YouTube Channel for your site and brand all your videos relating to your blog. Then you can see decent money. Also try to search for private advertisers.

      Reply
      • Abhinav sharma

        I will definitely try this and thanks for such a good information. Now moe focus will be on U.S.A traffic.

        Reply

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