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Does bid of $3 VS $0.5 make any difference when there are no competitors?

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hi Guys,

 

I'm bidding $3 for certain keywords which are branded names of products and in the last 30 days the avg. position is 1.0 and the search imps share is 100%, QS=10.

 

Now, would it make any difference (in terms of lowering down my CPC) if I lower down my bid from $3 to $0.5?

Since it does not seem that these keywords have competitors, would I have any chance to lower down CPC by decreasing my bid or it would stay the same when bidding $3 or $0.5 or whatever?

 

Thanks!

2 Expert replyverified_user

Re: Does bid of $3 VS $0.5 make any difference when there are no competitors?

Follower ✭ ✭ ✭
# 2
Follower ✭ ✭ ✭
Hello Stevan,

You can see if there are any other advertisers bidding on keywords if you look into the auction insights report. Just select the keywords or campaign you want to check > auction insights.

In theory it shouldn't matter as you are only bidding 0.01 higher than your highest competitor. Have in mind that if someone decides to start bidding on your branded name, while you have set your bid very low, it can result in losing traffic because you maybe don't notice you have competitors bidding on your branded keywords.

Conclusion: with no competitors it shouldn't matter, but be carefull with lowering your bid because of new competitors.

Re: Does bid of $3 VS $0.5 make any difference when there are no competitors?

Top Contributor
# 3
Top Contributor
Hi,

Even if no other competitor is bidding on the same keyword, there is a threshold ad rank required to hold particular ad position.
Reducing bid by significant amount may result in triggering of ads at bottom or you may also loose impressions.

Regards
Archit, AdWords Top Contributor, Community Profile
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Re: Does bid of $3 VS $0.5 make any difference when there are no competitors?

Top Contributor
# 4
Top Contributor
The big question here is - What are you currently paying for a click?

If the answer is 0.25 then you can comfortably drop your bid to 0.5... but if you're paying 1.5 then you are likely to miss out on traffic.

Why you would be paying $1.5 when there are no other advertisers would be a whole other question - but your current bid would be your starting point. On search the days of getting clicks for a couple of pennies seem to be well gone. It seems to be Google's way of telling us not to get too cute ;-)

The problem with bidding super high is that if someone - anyone not just a competitor - suddenly starts to compete for the same auction slot - perhaps because they simply don't know what they're doing - and your bid is higher, your cpc will go through the roof.

Re: Does bid of $3 VS $0.5 make any difference when there are no competitors?

[ Edited ]
Follower ✭ ☆ ☆
# 5
Follower ✭ ☆ ☆

Thanks a lot Guys,

So, just to summarize the main question - lowering down my bid will not lower down my CPC if there are no other advertisers bidding for the same keywords, correct?
So if I bid $3 and get CPC=$0.25, that is the threshold that I can't go below?


Thanks for all the other points, they are very useful!