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Why does it matter if I spend .20 cents or 1 dollar on a keyword?

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What difference does it make?

2 Expert replyverified_user

Re: Why does it matter if I spend .20 cents or 1 dollar on a keyword?

Top Contributor
# 2
Top Contributor
Hello there;
In short; the bid is a component in Ad-rank; the higher the bid the higher your ad is ranked;
Read more:
https://support.google.com/adwords/answer/3205379?rd=1
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Why does it matter if I spend .20 cents or 1 dollar on a keyword?

Top Contributor
# 3
Top Contributor

Hello,

 

In addition to what Moshe said above, I would encourage you to go through the below video by Google's Chief Economist Hal Varian where he explains about the Ad Rank and its importance with example:

 

 

My 2 cents!

Pankaj

Re: Why does it matter if I spend .20 cents or 1 dollar on a keyword?

Top Contributor
# 4
Top Contributor
This is one of the classic videos of AdWords...
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’