Essentials to Successful Bid Management

By Mark Browner | Mar 25, 2011
More Articles by Mark


Bid Management is a huge part of the work day of those managing a Pay-Per-Click (PPC) campaign in Google AdWords. It is something that must be done in order to stay competitive. While there are several different approaches that can be taken while managing bids, there are some steps that are always essential. The following are vital actions that, in my opinion, must be taken in order to successfully manage bids:

Look at Conversions
If you are able to track conversions, you should be paying very close attention to how your keywords are converting. Consider pausing the keywords that are getting several clicks and no conversions. You don’t want to throw all of your budget away on a keyword that isn’t giving you anything in return.

Look at Average Position
First, decide what position your ad should be shown at. Depending on the product, there can be “sweet spots” that tend to convert the most. Once you know your “sweet spots,” adjust bids according, increasing or decreasing them to strive for that position.

Look at Click-Through-Rate (CTR)
Your CTR has a direct affect on your Quality Score, so if you have a low CTR, you will have a low quality score. This means you are going to have to pay a lot more to get a good average position for your ad. It is extremely important to monitor CTR. Consider pausing keywords which have high impressions but low clicks.

Match First Page Bid Estimates
If your ad is not showing on the first page of the Google Search Network, it will most likely not get many clicks. In AdWords, the status column tells you if your bid is under the first page bid estimate. It also tells you what your Max Cost-Per-Click (CPC) needs to be in order to be on the first page. I highly suggest matching these bids if they are within your daily budget.

Make sure to keep these steps in mind when doing bid management. Remember, the ultimate goal is to show ads that will receive clicks and eventually lead to conversions.

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