bidding on individual keywords in google adwords

Mon Apr 20, 2009 9:41 am

Hey all,

I'm having some problems with my google ads, and I think I may not be bidding high enough for some keywords. I have over 50 highly targeted exact keyword phrases being used at the moment. Most of the keywords all have different 'first page estimate'. Is it normal to have to go through all the keywords and change each individual keyword bidding price?

ie. If 'first page estimate' for one keyword is $0.20 and I bid $1.00, could I be paying more than I have to? I'm thinking of just increasing my default bid to a higher price, but am wondering if that could mean paying more for cheaper keywords.

Hope this makes sense to you. Thanks in advance.

Posts: 50
Joined: Fri Mar 06, 2009 7:27 am

Tue Apr 21, 2009 12:54 am

Each keyword is different so it's normal that individual bidding prices vary (and will continue to based on competition and quality score).

The bid that you enter in is your maximum bid, but Google won't necessarily charge this. As you know it's an auction-based system. So for example, if you're bidding a lot more than your competitor, you may only be charged the amount needed to 'win' the bid auction. This may only be a few cents more than your competitor and could be much less than the maximum bid you stated. Of course, the bid price is not the only factor in ad positioning and history and quality score are weighted as well.
Posts: 21
Joined: Wed Jul 02, 2008 1:22 am

Fri Apr 24, 2009 12:16 pm

There is no need to set the bid price individually for each and every keyword. You can set the same bid price for a group or even all of your keywords at once.

I mostly use the AdWords editor to setup and administer my campaigns - if you haven't been using it so far, I highly recommend you download & start using it.
Posts: 5
Joined: Sat Apr 29, 2006 4:11 pm

Sun May 24, 2009 10:57 am

I think you have got your answer from others. However, I need to highlight below points about Adwords.

There are few factors Google is using to determine your bid price such as how old is your ad group, quality of the landing page, how relevant your ad and KWs with the landing page etc.

Always target 3 - 5th place on the first page to maximize your ROI.
Posts: 23
Joined: Sat Sep 25, 2004 10:11 am
Location: Melbourne Australia

Thu Oct 29, 2009 2:15 am

When you are trying to figure out how much to bid, the top two things you need to consider is what your commission is going to be, and what your conversion rate is going to be. It can take some trial and error to figure out what your conversion rate, and it is important to note that some conversion rates are less than 1 conversion in 300 hits! However, one rule to start out with is the 1:100 rule, which means that for every 100 hits, you can expect to get one conversion (however, your actual conversion rate may be much higher or lower than this). So, if your commission is only $25, you don't want to spend more than 25 cents per click, because if your conversion rate turns out to be less than 1 in 100, you are going to lose money. Make sense?
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Joined: Thu Dec 21, 2006 8:03 pm

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