PPC Bid Management

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PPC Bid Management

The AdWords platform allows for a great deal of flexibility in reaching a worldwide audience for your products or services. But one of the more complicated aspects of any PPC campaign is effective bid management. As you set up your campaign you will need to establish a budget and select a bidding strategy whether you want to manage it manually or let the system do it automatically.

The bidding strategy you deploy largely depends on your objectives and budget. Here we cover PPC bid management in more detail and offer tips to maximise your results.

Bidding Basics

AdWords lets you establish an exact budget so your campaign is profitable for your business.

The first step is to establish your daily budget. If the average cost per click is $0.25 on average, and you want to drive around 100 clicks per day to your landing page, you might budget approximately $25 per day. Note that setting a daily budget only applies to a single campaign and not all of them. The budget you establish should be an amount you are comfortable with spending.

Determining Default Bid

The default bid refers to the maximum cost per click in an ad group that you are willing to pay for. Here you will need to decide how much each click is worth to you. For more competitive industries you can easily expect to pay several dollars or even more per click. But your default bid may be considerably lower depending on your industry.

Setting a default bid starts by estimating the sales your site averages.

For example, if you sell a product for $10 and find that approximately 1 in every 10 visits results in a conversion, you would set the default bid at $1 or less. Any higher than that and your campaign would be essentially losing money. But keep in mind that the actual amount you pay may be a lot lower depending on the competition and other factors (including Quality Score).

Automated vs Manual Bidding

Upon setting up your first campaign, you can select either an automated or manual bidding strategy.

The automated bidding option is perhaps the easiest strategy as AdWords will automatically manage your bids based on the daily budget that you established in the previous step. This is a good option if you are still relatively new to PPC advertising or want to maximise your clicks. But the obvious downside is the lack of control as you may want to bid higher or lower for a particular keyword.

With manual bidding you maintain complete control over the bidding process down to individual keywords. If you discover certain keywords that are more for instance, you could allocate more of your budget to those phrases to increase sales.

Bid Management Strategies

Now that you have a basic understanding of bid management, here are some additional tips to handle your campaign more effectively.

Choose your bidding based on your budget and scale: The first order of business is to estimate approximately how many clicks it takes to get a conversion. This will help you establish a budget for your campaign while still remaining profitable.

Don’t constantly adjust bids daily: It can be very tempting to obsessively look at your campaign every day and make changes frequently. But doing so prevents your campaign from gathering sufficient data to make a decision. Let a campaign run for at least a week and make changes based on the data from the reports.

Monitor rules carefully for automation: An automated betting strategy makes it relatively easy to maximise views and clicks. But it is still a good idea to keep tabs on your account and adjust your strategy accordingly.

Experiment with different options: Even if an automated bidding strategy has produced excellent results, you should still be testing other bidding strategies as you could potentially be leaving conversions on the table.

Don’t too much on a keyword: Being in the top position increase its visibility but it is not always the most profitable. Bidding more than you can afford obviously tears into overall your return on investment so be cautious about how much you bid on each keyword.

Try enhanced CPC bidding: This is a bidding feature within AdWords that automatically increases your bids for clicks that are more likely to result in a sale. Real-time factors such as device, location, and even the time of day are considered.

Using custom ad scheduling: If your business has more customers at a certain time (e.g. lunch or dinner time for a restaurant), consider reallocating your budget during those hours.

Implementing these strategies will help you more effectively manage your budget.

In the next section we look at how to better optimise your landing page and increase conversions.

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