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Be Careful Of Your Adwords Bidding

Adwords has a great system that will help you in maintaining the bidding price for your campaign, through the Ad Group Max CPC, and the individual keyword Max CPC. With this you might think that you are save. Yes you are saved, but this is also where the loophole comes in too.

What Happen?

There are two different level of bidding in Adwords, one is the Ad group level and the other is the keyword level itself. The thing is that if your Ad group bidding is higher than the keyword bidding, you may be paying more for the bidding in the keyword level. At least lesser than in Ad group level.

Here is the thing. Most Adwords users are using only the Ad group bidding only, and not the keyword level bidding. As Ad group bidding is in default once you created a new Ad group, making most of them ignoring the keyword level bidding.

This is where most of the Adwords users miss out. Not all keywords in the PPC  are priced the same, and you should make use of this to cut down cost for your PPC.

If your Ad group bidding has a higher bid price than the keyword level bid, then most properly your keyword level bidding will actually be more than you bid. For example: your Ad group is set to $0.50 as default, and your keyword bid is set to $0.35 for one of the keywords in the same Ad group. When someone click on the PPC ad, the click price will be set from$0.35 to $0.50 instead of $0.35 and below.

This is not wrong though in Google’s eyes, you are still paying the intended bid price $0.50 in Ad group level.

The solution

Set the default bidding for Ad group level lower than all the keywords level in the Ad group, this way you will only pay for the individual keyword bid you are willing to pay for. Some of you might ask, if the Ad group level bis is too low, would it not be switch off? The answer is no, because the keywords bid are higher than the Ad group bid. Unless your keyword bid has the same bid. So add in a extra one or two cents on the keyword bid

If you have a better solution or have something to share, please comment below and I will get back to you soon.

by admin

2 comments… add one

  1. “If your Ad group bidding has a higher bid price than the keyword level bid, then most properly your keyword level bidding will actually be more than you bid”

    my adgroup default bid is 14$ and one of the keyword in that adgroup is 5$. But still the Avg cpc(paying per click) is only 2.78$.
    I m not paying more than my keyword bid!!!!!!

    Reply
    1. Hi Actuary,

      Thanks for the comment.

      But of course I have not tried your way of bidding before, as I am very conservative in how I invest in my PPC for ROI.

      Hope to hear from you again.

      Reply

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