There are a lot of creative strategies and approaches to the process of bidding in Adwords. Bidding is an important factor in advertising on Adwords, as it determines your ad position and it also eats up your monthly budget. So, being careful while bidding and applying the appropriate strategy helps keep things going as they should. Strategies can be tested on the go and results can be collected and measured to see what strategy works best for you.
Always Be Number 1
Being number 1 is always every advertisers dream, but to get there a very high bid is required. The top listing usually gets a lot of traffic, even more than the second listing. It is however, difficult to maintain for any given keyword or key phrase. If the keyword or key phrase is very popular, it may get pricey.
Adwords determines the click through rates of listings. If your listing on the top spot is not getting any clicks, then keep in mind it may be more difficult to maintain the top spot as other advertisers will also be bidding very high and trying to get more clicks than you.
Never Bid More than the Minimum Bid
This strategy focuses on cutting the cost. It is possible that some top bids of key terms will be as high as the minimum bid. These terms are likely to be less popular and generate a low amount of traffic or get any clicks. So, bidding more than the top bid is useless as this strategy assumes that even if the top bid is same as the minimum bid, visitors will read through all the advertisements and perhaps click on much lower bids.
This strategy focuses on positioning your listing next to that of a weaker competitor and this is the beauty of it. For example if you (cell phone is for $79) and your competitor is selling the same item and at a relatively higher price (cell phone for $99), then placing your listing next to theirs will give your listing more exposure and a higher probability of clicks.
Keeping it Steady
This strategy focuses on keeping the bid constant. For example, you calculate the maximum amount you are willing to pay for each visitor on your site. Let’s say that amount is $0.89. You set this as your bid for each of your keywords and this is where your account runs on autopilot or you can say with little maintenance as possible. You can also access your Adwords account and adjust the bid to suit your ROI.
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