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ad groups - default bidding - limitation

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello everybody,


I have one basic (but essential) question:

So let's assume that there's a rookie ppc manager and sets the CAMPAIGN level the budget to 30 euros/day for one month (via manual bidding and not via automatic bidding cause he wants to make the respective changes on keywords that go/don't go well). 


Assuming that you have set the CAMPAIGN level budget to 30 euros/day, how do you calculate the AD GROUP bid (max cpc) ?? Should it be for example just 2 euros when you are running a campaign of 30 euros/day?  


The KEYWORDS override the ADGROUP level. Should the bid for KWs be more or less that the ADGROUP level (as best practice)>?

Thank you in advance. 




1 Expert replyverified_user

Re: ad groups - default bidding - limitation

Collaborator ✭ ✭ ✭
# 2
Collaborator ✭ ✭ ✭



My advice is the following :


The ad group default bid matters in these situations :


1) When you have automatic bidding

2) When you have manual bidding and you add a new keyword it inherits the ad group bid until you change it.


"The KEYWORDS override the ADGROUP level. Should the bid for KWs be more or less that the ADGROUP level (as best practice)>?"


In practice the keywords should have the bid that brings you the conversion rate that leads to profit also known as return of investment or ROI.


Usually you would want a keyword to have a bid that is  at least equal if not greater than the "first page bid estimate" or for more clicks you can set it to equal the "top of page bid estimate".


Even if you match your bid to the "top of page bid estimate" it doesn't mean that it will make your ad appear all the time in the first 3 positions.


Read more about bidding from this help page :

Re: ad groups - default bidding - limitation

Top Contributor
# 3
Top Contributor


Well... in practice,  you should have your "first shot" for the bid based on the raw data as shown by the keyword planner

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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