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Setting Initial Bids for New Campaign/Account

[ Edited ]
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# 1
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Hi guys -

 

What's the approach for bidding on a brand new account/campaign? I'm using manual CPC because I'd like to learn the hard way (and hopefully learn quickly).  I've set my max CPC bid to $2 (at random) for the campaign as it sits right now.  The campaign hasn't started running yet but I've set up my list of Keywords and ads and it's ready to go.  Should I just hit start and observe my keywords' performance at this bid level and adjust as necessary? Is that the basic approach to this?

 

Cheers,

 

 

Mack

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Accepted by topic author Mack A
March 2017

Setting Initial Bids for New Campaign/Account

Top Contributor
# 10
Top Contributor

Hey Mack,

 

New keywords receive a quality score based on other advertisers QS for the same keyword in exact match form. Once the keyword starts receiving impressions the quality score will update pretty quickly.

 

I would still recommend using the bid strategy that @Archit referenced as opposed to maximize clicks unless your only goal is to drive traffic regardless of quality. The Maximize Clicks strategy will drive as much traffic as possible at the target budget, meaning that it will look to minimize cost/click. Low CPC keywords have low CPCs for a reason - they generally don't perform well for other advertisers so there are fewer competitors in the auction, or the competitors have very low bids set on them. You run the risk of driving lower quality traffic to your site and not gaining any traffic/insights on how the other keywords in your account perform.

 

I also agree with @tomhalejr that one week to prove value is unreasonable. All you will be able to do in one week is experiment. I'd say get volume on all relevant terms and when the week is over, if you're lucky, you will have an idea if AdWords is a good route for you going forward.

Jim Vaillancourt, AdWords Top Contributor, LinkedIn
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Setting Initial Bids for New Campaign/Account

Top Contributor
# 2
Top Contributor

Hey Mack,

 

Given your situation I would recommend setting your keyword bids at the "Est. top page bid" amount. If your goal is to learn quickly this will ensure that you collect sufficient data to optimize in a timely manner. An arbitrary bid across all keywords would likely lead to some keywords getting a ton of traffic and some getting none at all.

 

Furthermore, another strategy I would recommend is tiering your bids by match type (assuming that you are adding the same keywords under multiple match types). Set your exact match keywords with the highest bid, phrase second highest, and broad lowest (in 25% increments). This tactic will allow you to drive traffic on exact match keywords which is important because they represent the most granular unit you can bid on. It will also prevent things from getting too out of control by keeping broad match keywords in check, which are generally the lowest performing keywords in an account with multiple match types across keywords.

 

Hope that helps,

Jim Vaillancourt, AdWords Top Contributor, LinkedIn
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Setting Initial Bids for New Campaign/Account

[ Edited ]
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# 3
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Hey Jim,

 

Thanks for the response.  To follow up here, you mention using broad match (is this broad modified or just broad?), phrase, and exact match across my keywords.  I've seen this strategy used before.  My question here is is this generally good practice to set up your keyword lists like this and set up bid adjustments based on match type?

 

You also mentioned Estimated top page bid amount.  This account is new and has zero data.  Where does Google get the "estimated top page bid" amount from? Does it do it from historical account data or from its own aggregate data? Because nothing is showing up for me here for any of my keywords.

 

EDIT: I'll retract that, my AdWords account just populated the "est. top page bid" value.

 

Would you recommend trying out "Target first page location" for a bid strategy in this case?

 

Unfortunately this campaign was approved yesterday and should have gone live two days ago and it will only run for about a week so there isn't a lot of time to experiment and tweak here.  It will launch on Tuesday next week and run only 'til Sunday before we shut it down.  Maybe this should factor into how I go about this.  I'm trying to be flexible with my keyword match types as well here because the geographical region we're targeting is small (35km radius in a small City) and the niche is even smaller.

 

Any more advice would be really appreciated.

 

 

Cheers.

Setting Initial Bids for New Campaign/Account

Badged Google Partner
# 4
Badged Google Partner

You're best off just going with the automated "maximize clicks" bid setting. You're not going to get anything of value in a week, and you're not going to be advertising long enough to optimize anything. 

Tom

Setting Initial Bids for New Campaign/Account

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# 5
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You know I might just do that because you're right there's not enough time to do much with this.

Setting Initial Bids for New Campaign/Account

Badged Google Partner
# 6
Badged Google Partner

I didn't mean to be rude or dismissive. But, if this is the position you have been put in, then you can't "win". Smiley Happy

 

Let it run within your budget, don't over-think it, and who knows... Maybe someone will actually give you a chance to do your job, and produce some results. Smiley Happy

 

If not, then concentrate your efforts on finding new clients and new business that might actually work out in the long run. Not every battle is a victory. A wise general knows when they can fight, and when they can win. Smiley Happy

Tom

Setting Initial Bids for New Campaign/Account

[ Edited ]
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# 7
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Haha na didn't think you were and it's all work in progress, friend! This is an in house pilot, more or less, that I'm trying to sell to my boss.  There'll be more. Thanks for the advice.

Setting Initial Bids for New Campaign/Account

Top Contributor
# 8
Top Contributor

hi @Mack A,

@JimVaillancourt has provided good suggestions here.

 

As initially there is no historical data in the AdWords account so the system takes time to improve the QS. To win the ad auction, you need to bid high if the QS is not good enough.

 

Yes, if you want to save time and efforts and budget is not an issue then you can go with the automated bid strategy "Target search page location: top of the first results page".

 


Regards
Archit, AdWords Top Contributor, Community Profile
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Setting Initial Bids for New Campaign/Account

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# 9
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What does Google use for QS in its AdRank calculation at the onset of a campaign that has no QS yet? 

Marked as Best Answer.
Solution
Accepted by topic author Mack A
March 2017

Setting Initial Bids for New Campaign/Account

Top Contributor
# 10
Top Contributor

Hey Mack,

 

New keywords receive a quality score based on other advertisers QS for the same keyword in exact match form. Once the keyword starts receiving impressions the quality score will update pretty quickly.

 

I would still recommend using the bid strategy that @Archit referenced as opposed to maximize clicks unless your only goal is to drive traffic regardless of quality. The Maximize Clicks strategy will drive as much traffic as possible at the target budget, meaning that it will look to minimize cost/click. Low CPC keywords have low CPCs for a reason - they generally don't perform well for other advertisers so there are fewer competitors in the auction, or the competitors have very low bids set on them. You run the risk of driving lower quality traffic to your site and not gaining any traffic/insights on how the other keywords in your account perform.

 

I also agree with @tomhalejr that one week to prove value is unreasonable. All you will be able to do in one week is experiment. I'd say get volume on all relevant terms and when the week is over, if you're lucky, you will have an idea if AdWords is a good route for you going forward.

Jim Vaillancourt, AdWords Top Contributor, LinkedIn
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.