Stock Market Bid Price to AdWords PPC Keyword Bidding
PPC

Basics of Keyword Bidding in PPC Google AdWords

Let’s start with, What’s a Bid Price?

A Bid Price is the highest price that a buyer (i.e., bidder) is willing to pay for a good. It is usually referred to simply as the “bid.” – defined by Wikipedia

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Now in defintion of PPC, when you select each keyword for your PPC campaign, you can choose how much you’re willing to pay whenever a customer searches on that keyword and clicks your ad in the Google results. This is your Keyword’s maximum cost-per-click, or max CPC, bid amount.

Keyword Bidding is of 2 types primarily;

  1. Manual Bidding – the default option in PPC to let you manage bids / max cpc yourself. You can set bids at the ad group level, or for individual keywords.
  2. Automatic Bidding – ideal for advertisers who don’t want to spend a lot of time setting bids, but would like to get the most clicks possible for their ads within their budget. You set a daily budget, and AdWords will help adjust your cost-per-click (CPC) bids to receive the most possible clicks within your budget.

Tools to help choose a Keyword Bid in Google AdWords;

  • The Opportunities Tab – helps you identify, which keywords is good for bid changes
  • The Bid Simulator – “what-if” scenarios such as: “How many more impressions would I have received if I had raised my bid by US$0.10?”
  • Enhanced CPC – a bidding feature that looks for ad auctions that are more likely to get to sales for you, and then raises your max CPC bid up to 30% (after applying any bid adjustments you’ve set) to compete harder for those clicks
  • Conversion Tracking – an advanced feature that shows you, which keywords most often lead to a given action on your website (these actions, such as a purchase or newsletter signup, are called conversions)
  • Google Keyword Planner Tool – shares bid value, competition & performance stats for your initial list of keywords that is planned to be used in Google AdWords campaign

3 Different types of Keyword Bid Estimates;

  1. First Page Bid Estimates – bid you likely need to get your ad on the first page of search results
  2. Top of Page Bid Estimates – bid you likely need to get your ad among the top ad positions on the first page of search results
  3. First Position Bid Estimates – bid you likely need to get your ad in the top spot

These are the types that would inform/suggest you to increase your keyword bid to a certain value in order to position your Ads in the first page/top position/top spot of the Google paid search results for better performance

Note: These estimates are based on an exact match for your keyword. Ad position also depends on the keyword’s Quality Score and current advertiser competition for that keyword, so there’s no guarantee your ad will consistently be in your preferred position.

How to Choose your Bid & Budget?

To run your ads on Google, you’ll need to decide on the right budget and bidding options.

  • You’ll often pay less than your maximum bid because you’ll only pay what’s minimally required to hold your ad position and any ad formats shown with your ad, such as sitelinks
  • Your budget amount is for a single campaign (as opposed to a total amount across all your campaigns), and it represents the average amount you’re willing to spend per day in that campaign

Because traffic fluctuates from day to day, Google may allow up to 20% more clicks in one day than your average daily budget specifies. We call this overdelivery. However, Google AdWords system makes sure that in a given billing period, you’re never charged more than 30.4 multiplied by your daily budget amount. For example, if you budget INR 100 per day, the maximum you would pay is INR3040.

What is Bid Adjustments?

You can set bid adjustments that increase or decrease your bids when your ad is competing to appear on mobile devices, in specific locations, and at particular days and times.

Bid adjustments can give you more control over when and where your ad appears, and are applied on top of your existing bids. You can also customize your bidding strategy by setting multiple adjustments that work together, such as location and time of day, or time of day and mobile devices.

Why your Ad still doesn’t appear?

In some cases, your ad might not appear in your preferred placement in the search results, even if you meet the relevant bid estimate for that placement. Keep in mind that these estimates are guidelines based on your keyword’s Quality Score and recent advertiser competition, and they apply to search queries exactly matching your keyword. Note: Meeting these bid estimates isn’t a guarantee of where your ad will appear.

Below are a few common reasons your ad might not show on the first page, even when you meet the keywords bid estimate:

  • Advertiser Competition: There could be new competition on your keywords
  • Keyword Match: The searches customers are performing might not match up exactly with your keywords
  • Budget Changes: If a recently changed budget has been fully depleted, your ad might not run

Regarding Google AdWords PPC Training

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