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Adwords First Page Estimate

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# 1
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I have noticed in several instances that the bid price adword suggests as needed to get on the first page is WAY higher than what actually is needed.  i have several word phrases for which adwords suggests over $50/click.  For one phrase I "bit" getting 3 worthless clicks at around $35 a piece. Yet when I said t heck with it, I am not going to pay that, and set the max bid as $10, bid strategy top of the page, I get right to the no 1 position.  Very suspicious.  Is this how adwords makes there money??

1 Expert replyverified_user

Re: Adwords First Page Estimate

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# 2
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Hey Stanley, how are things?

The actual CPC you pay will vary a lot during the day, and specially during each auction. The suggested First Page Bid is an estimate based on your keyword, quality score and competition. It does not mean that you need to pay that exactly value, but that's the average if you wish to appear at all times.

You can have an suggested bid of $ 30 but bid $7 and still receive clicks, because some auctions won't require the bid to be those $30. Of course the volume will be way lower than if you had the bid within the appropriate range.

In terms of strategy, you need to check if that suggested first page bid match closely with the other words. If you value is way bigger then the others, it usually indicates that you need to optimize your campaign, specially your Quality Score for that keywords.

Hope this helps.
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Leandro Martinez | Basta1Click

Re: Adwords First Page Estimate

Top Contributor
# 3
Top Contributor
Hi Stanley,

For an exact keyword, the suggested First Page Bid is usually pretty accurate, but as Leandro says it can depend on whether your competition varies at different times.

For phrase and broad, Google's suggested bid covers every possible auction your keyword is eligible for, and some of those might not be for you.

Example:

Your keyword is "limo service"

For most searches $20 is a high enough bid to appear on the first page. But what if there are lots of people bidding on and searching for "super luxury limo service" and it takes a $50 bid to appear on the first page? Google will tell you that a $50 bid is needed for "limo service".