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Do you have a personal minimum bid amount?

Explorer ✭ ☆ ☆
# 1
Explorer ✭ ☆ ☆

I am currently bidding on some keywords that have estimated top of page estimates that are quite low (e.g. $0.05). I'm wondering if I should lower my bids that far or set a sort of minimum (like $0.30) for everything, knowing that I'll likely pay the lower amount anyway if my ads show.


In the accounts you manage, so you have a threshold below which you won't bid just to be absolutely sure you'll be shown?

3 Expert replyverified_user
Marked as Best Answer.
Accepted by Mini-CM (Community Manager)
September 2015

Re: Do you have a personal minimum bid amount?

Top Contributor Alumni
# 2
Top Contributor Alumni

Well, in my own case, I would say no, I don't have a fixed dollar amount that I "won't" bid under. I manage client bids to maximize ROI--that is, to bid the least amount possible to produce the desired number of conversions (sales or leads) at a price that's cost-effective.


I would also remind you that the "first page bid estimate" and "top of page bid estimate" can be as much about keyword quality score as anything else. These estimates do not always reflect the competitive bid level (the bid you actually need to offer to compete for the most/best traffic available). 


I think less about these estimates than I do about actual performance--are my ads being triggered and where are they positioning when they win the ad auction and am I getting the sales/leads the client wants.


Just my $0.02.

Google AdWords Top Contributor

Re: Do you have a personal minimum bid amount?

Top Contributor
# 3
Top Contributor

Not necessarily. I do tend to bid in 0.05 multiples though, except situations when I calculate bids by multiplying my margin per conversion (for the product I'm advertising) by the estimated conversion rate, in which case I may end up bidding 0.23 or 1.47.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: Do you have a personal minimum bid amount?

Top Contributor
# 4
Top Contributor

I never really set that much store by estimates - I rarely even look at them to be honest - what matters is the real-life data and it's that upon which I base all my decisions.


That said, I never like any Ads to slip below an average position of #3 so I'm never near the bottom of the page.



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