AdWords How Much to Bid? 25 Tips

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AdWords How Much to Bid? 25 Tips      

How often Google shows your ads when the opportunity presents itself is primarily reliant on ad quality and how much you bid. To this end, proper bidding has become a sort of science as everyone seeks to develop a winning strategy to make optimum use of Google as an advertising platform. The 25 tips below regarding how much to bid will help you determine the best approach that perfectly suits your needs.

Set objectives

Without clearly defined targets, formulating a winning strategy is impossible. Set goals regarding the traffic you wish to attract, the conversions you desire, the exposure you are after, etc.

Base bidding on campaign type

If exposure is what you are after, then, bid high on cost-per-views, impressions and the like. If conversions are your primary target, then, bidding should be conversion oriented.

The importance of training

To fine-tune bids, training is absolutely crucial. It will equip you with relevant information that is necessary for determining the best scheme to maximize results.

Gain certification

Certification level training will sharpen your AdWords knowledge including effective bid placement which is a concept highlighted at ppchire. It entails training and taking a test after which you become Google certified in the category chosen such as Google Shopping, Google Mobile, etc.

Make bids based on profit margins

If you stand to make over $100 from one sale, then bidding north of $1.50 is feasible. The bigger your profit margin, the higher you should bid.

Consider the conversion rate

The conversion rate should inform your bidding. To determine maximum CPC, multiply expected profits with the conversion rate.

Factor in price of product

Bids should take into account product price. For instance, if you are selling a $10 or $15 item, then, you can approximately bid as high as $.20.

Return customers

If most of your clients tend to come back for more, that is enough reason to bid high. In insurance, for instance, it is not uncommon for bids on certain keywords to cost $50.

The importance of quality ads

Regardless of how high you bid, if your ad is poor quality, it will all be for naught. Google shows ads based on rank which factors in your maximum CPC as well as the ads quality. In short, make sure your ads are high quality.

Place lower bids for a smaller budget

Bid low if your budget is constrictive. If you bid $1 and you have a $5 budget, your budget will be wiped out when Google displays your ad only 5 times.

Bid for long tail keywords

Research and focus on placing winning bids for long tail keywords which attract enough traffic since they tend to be cheaper.

Remarketing bids

Develop an aggressive remarketing bid strategy since remarketing often offers a better return on investment.

Start small

When starting out, restrict bids to a maximum of $1 or lower. This way, you will not lose out as you learn and streamline other aspects that bump up ROI such as landing pages.

Start with automatic bidding

The two bidding options available are manual and automatic bidding. Start with automatic bidding which only entails stipulating your budget as you discover the AdWords environment.

Bid higher than competitor

Only by having a higher bid and better ad quality is your ad most likely to show. If you cannot beat opponents by placing higher bids, then, increase the quality of your ad.

Bid aggressively for position and exposure

For brand exposure and position, place higher bids since the goal is to get recognition. It will eventually pay off in the future.

Do not always go for first place

Bidding to become the ultimate winner for a particular keyword is not always the best strategy. Bid slightly lower than the highest bid. This way, your ad will show second or third in SERPs with almost similar results at a lower cost.

Practice season based bidding

If you sell seasonal products such as winter garments or Christmas artifacts; during in-season, increase your bids.

Update your bids 3-4 times per week

With AdWords, someone is always looking to outperform you. Therefore, you have to continually update bids to maintain reasonable ad rank.

Develop product groups

Base product grouping efforts as per what works by tinkering around. Be patient, though, it may take some time to find your sweet spot.

Performance bidding

This bidding strategy demands placement of higher bids when ads are performing to determine if ad performance can increase, and to what extent. It gives valuable data that can be helpful in determining your bidding sweet spot.

Test different match types to reduce CPC

Exact match bids tend to cost more than broad match bids. A good workaround to reduce CPC and boost ad efficacy is to focus on broad matches in tandem with extensive negative keyword use. Do personal tests to find out what works for you.

Vary your ads

As much as you focus on making winning bids, also concentrate on changing ads frequently. Moreover, critically look at the entire process from ad display to conversion holistically so as to streamline non-performing aspects.

Make use of analytics

Connect your Analytics and AdWords accounts to collect relevant data that will give insight concerning how to tweak bidding to optimize results.

Get professional help

If it all seems like too much, guttulus is a resource that can be of great help and can help you out regarding anything AdWords related.

In conclusion, you will notice that there are no concrete, one-shoe-fits-all figures given. This is because bidding is dependent on many variables that are hardly ever similar in two given scenarios. The reality is that whether a bid is high or low depends on the situation at hand given the price, conversion rate, profit margin among other factors as per what your enterprise or product entails.