AdWords
4.5K members online now
4.5K members online now
Get started with AdWords - learn the basics to get set up for success
Guide Me
star_border
Reply

Bidding on expensive relevant keywords?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

 

Just a quick question. Let's assume I have a tight budget. Would it be better to bid on the most relevant keywords (even if they are the most expensive) or to bid on less expensive keywords, but less relevant? 

 

I know I can estimate my break point but this break point may vary depends on the impressions rate, which would obviously be higher with the expensive keywords as they are the most accurate one.

 

What would you do? I do not think I can reach my break point if I can only afford a few clicks a day.

 

Thank you

 

2 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Pacha
September 2015

Re: Bidding on expensive relevant keywords?

Top Contributor
# 2
Top Contributor
Hello, Pacha.

The funny thing is that it often happens that keywords we think are relevant (semantically) fail to convert in a recognizable way.

Of course, if you have keywords that clearly state a conversion intention and you have one of the best offers on the market, that should be the way to go (bid on them).

Otherwise I'd look at the landing pages with the highest conversion rate (organic) and try to figure out, from webmaster tools, which would be the most relevant search terms for that page.

Then you should figure out if the cpc divided by the conversion rate is lower than your average profit per conversion. If it is, go for that.

If you don't have proof that some pages do convert organically before you try to use AdWords, it's all a lottery and in this case I'd try to go for a bigger data set, i.e. cheaper keywords.
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Pacha
September 2015

Re: Bidding on expensive relevant keywords?

Top Contributor
# 2
Top Contributor
Hello, Pacha.

The funny thing is that it often happens that keywords we think are relevant (semantically) fail to convert in a recognizable way.

Of course, if you have keywords that clearly state a conversion intention and you have one of the best offers on the market, that should be the way to go (bid on them).

Otherwise I'd look at the landing pages with the highest conversion rate (organic) and try to figure out, from webmaster tools, which would be the most relevant search terms for that page.

Then you should figure out if the cpc divided by the conversion rate is lower than your average profit per conversion. If it is, go for that.

If you don't have proof that some pages do convert organically before you try to use AdWords, it's all a lottery and in this case I'd try to go for a bigger data set, i.e. cheaper keywords.
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: Bidding on expensive relevant keywords?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hello AdWiser (great name by the way),

Thank y ou for your answer! You offered me a lot of different solutions which is great! I'll have a look at all the data very soon.

If someone else has an advice, please write it down. I can never learn too much Smiley Happy

Re: Bidding on expensive relevant keywords?

Top Contributor
# 4
Top Contributor

Hi @Pacha another option to consider is to consolidate your spend so you can spend more and have more complete coverage of Ads for a shorter period.  For example, let's say you budget is just $10 a day; rather than advertising at $10 a day for a month (~ $300), spend $30 a day for 10 days.

 

Why might this help?  If you're making a profit from whatever you do, the point you need to reach is where AdWords returns a positive return on investment.  Once you reach a positive ROI you can increase your spend because the income from AdWords is covering that spend.  The problem with very small budgets - especially when combined with higher CPCs is that your Ads may be shown so infrequently that the Account never really has a chance to perform.  To put it very simply, if 30 people search for your product each day and you can only afford to show your Ad to 10 of them, you may end up always showing your Ad to the ones who don't buy.  There's also the risk that your Ad doesn't show to someone a second time when they needed that second chance to make their minds up.

 

Advertising online works best when you reach close to maximum impression share so I'd usually advise trying to achieve this and with a reduced budget this can mean using fewer Keywords, lowering your position slightly and perhaps using your budget over shorter periods as described until such time as the Account returns a profit.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Bidding on expensive relevant keywords?

Top Contributor
# 5
Top Contributor
You're welcome, Pacha and I'm glad it helped. And I'll write down Jon's idea as well, as I sometimes forget to apply that strategy myself.
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.