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Keyword-level bids override your ad group's default bid

Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

Hola Smiley Happy

I need briefly elaboration for the following:
Why we set ad group default bid, when later we set manual CPC? I do not understand why we set ad group bid and then manual CPC? Which bid we pay?
When someone clicks we pay for the keywords or we pay for amount we set on default ad group?

Any help appreciated. Thanks!

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Accepted by topic author Marija Hris
April 2016

Re: Keyword-level bids override your ad group's default bid

Top Contributor
# 3
Top Contributor
Hi Marija,

In regard to bids (or CPC), Google follows a philosophy according to which the specific overrides the general. (In contrast, politicians in democracies follow the philosophy that the constitution (the general) overrides individual laws (the specific).)

Often times advertisers just add a lot of KWs to theirs AGs, that are recommended to them by Google under the Opportunities tab. As Archit explained above, these newly added KWs will accrue the general, AG level CPC values unless the advertisers take specific actions.

Best,
Lakatos

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Re: Keyword-level bids override your ad group's default bid

Rising Star
# 2
Rising Star
Hi Marija,

We set the adgroup level bid just to save time and efforts (for manual bids). For a set of keywords withinin adgroup we choose and set a default max CPC bid which means we don't want to pay more than that amount for any keywords of that particular adgroup.
While if we set a bid for a particular keyword to override the adgroup bid on the basis of keyword importance.
Suppose a particular keyword give more conversions then you can bid higher for that particular keyword than the adgroup bid.

Regards
Archit, AdWords Rising Star, Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer.’
Marked as Best Answer.
Solution
Accepted by topic author Marija Hris
April 2016

Re: Keyword-level bids override your ad group's default bid

Top Contributor
# 3
Top Contributor
Hi Marija,

In regard to bids (or CPC), Google follows a philosophy according to which the specific overrides the general. (In contrast, politicians in democracies follow the philosophy that the constitution (the general) overrides individual laws (the specific).)

Often times advertisers just add a lot of KWs to theirs AGs, that are recommended to them by Google under the Opportunities tab. As Archit explained above, these newly added KWs will accrue the general, AG level CPC values unless the advertisers take specific actions.

Best,
Lakatos

Re: Keyword-level bids override your ad group's default bid

Follower ✭ ✭ ☆
# 4
Follower ✭ ✭ ☆
Many thanks @Lakatos, I have understand now Smiley Happy

Thanks for elaboration