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Methods for Choosing a Starting Bid

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi, 

 

I am simply curious about the various methods I'm sure some of you have when it comes to choosing your starting bids for either search or display campaigns. Things like, where do you start? Where do get that number from? Time elapsed before you adjust? 

 

Any insight into your thought process would be great!

 

Thanks, 

 

Casey

2 Expert replyverified_user

Re: Methods for Choosing a Starting Bid

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆

 Hi Casey,

 

Everyone has their own way of setting bids when they start of with the account. The basic step that you should follow is to give first page bid to all your keywords while ensuring that the match type hierarchy is followed. Wherein, the broad keyword gets the lowest and the exact keyword gets the highest bid. Now this doesnt mean your avg cpc for the exact keyword will be highest. Its just a way to ensure that relevant keywords get triggered from right places.

 

Now if your objective is to be on number one position you should ideally look at other things like landing page relevancy, ad copies, users experience,etc. because bidding itself wont get you on number 1 if the above mentioned things aren't proper.

 

Hence, to start of with, follow the first page bid estimates and then change bidding basis your objectives.

 

With respect to time when we adjust bids - its a regular process. So as i said, if you see you are showing very low on the page, you will ideally start pushing those keywords by bidding. Also, if you see the CPC for certain keywords are really high and you cant afford them. Then before pausing them i would try to bring their position down by reducing their bids and still if they are costly to me, i would pause them.

 

Hope this helps.

 

Regards

Rohit

Re: Methods for Choosing a Starting Bid

Top Contributor
# 3
Top Contributor
Hi Casey,

I would tend to agree with Rohit here... when I start a campaign, I do like to ensure that my keywords atleast get triggered on the first page. Though, 1 thing to keep in mind is that the first page bids can be extremely competitive for certain keywords. If I am not sure about some bids, I keep them a little lower at a CPC i am more confident about. You can tweak these bid once you see the performance of these keywords or similar themes that you have live.
There is no definitive time elapsed before you need to change bids.. I change bids basis performance. I would generally change bids for branding campaigns basis their average positions and the search volumes & CTRs I would see. CTRs are also affected by Ads so be careful while using this as a KPI.
For performance based camapigns, my bids would also depend on the Cost per converted click that I would be comfortable with. If you have ROI or revenue tracking, I would consider that as well.

Hope this helps!
Cheers,
Shweta

AdWords Top Contributor
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Re: Methods for Choosing a Starting Bid

Rising Star
# 4
Rising Star
Hi Casey,

I agree with shweta here. While going for the first page bid is fine, it can be a costly affair. But, I believe, first page bid is something that you get as a prompt from the interface when you start a campaign. Correct me if I am wrong but you were inquiring about how to set the bids when you are going live with a campaign.

If this is was in fact your query then let me tell you, there is no exact math to do here. I would advise that you firstly look at the estimated bids that you are receiving according to the Keyword Tool. Although, the tool is not 100% accurate, it can be a great help when you need to set your first bids for your keywords.

You can take a step further, take your learning from the tool and beef up your bids by say 10- 20% and then set your initial bids. You should also try and follow the strategy where the max bid is set for the exact keywords and the lowest for the Broad, if getting relevant leads/traffic is your campaign goal. If branding is your lookout then I would suggest you take the opposite approach and give higher bids to the Broad (or maybe BMM) keywords, this way you ensure your visibility is maximised as much as possible.

Another safer & tried and tested (by me) method to understand starting bids would be to look at industry level statistics (you can ask your Google Rep to help you with these). Industry specific numbers can help you get a better understanding of what exactly you need to bid & spend to achieve your goals.

Hope this Helps!

Cheers!

Shashank
Cheers,
Shashank Singh, AdWords Rising Star |
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