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Keywords Bid

Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

Hey there Smiley Happy

Hope all well hope all good Smiley Happy

Image the following scenario: there is no bidders only me. How the keywords bid is established? How Google set the bid?
Let say, the keyword is particularly new and there is no bidders at all, only me. 

Many thanks

1 Expert replyverified_user

Re: Keywords Bid

Rising Star
# 2
Rising Star

Re: Keywords Bid

[ Edited ]
Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆

AdWords automatically sets a "minimum AdRank threshold" that an ad must meet to appear on the first page of results.

AdRank is bid x QS + EI, so your account is using your actual QS and extensions to reverse-guesstimate what you bid to get on the first page of results.

The threshold varies by search, because it's automatically calculated bases on user response to all ads on a query. So, if you target a search where nobody has good CTR, the threshold can be very high.

The thresholds exist to prevent advertiser from spamming low-competition searches with crappy one-cent ads, because Google doesn't want to repeat the mistakes of Overture.