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Suggested Bid vs Competition

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi.

 

I need to decide between two keywords:

 

  • A (search volume: 1300, competition: 0.45, suggested bid: 0.81)
  • B (search volume: 1300, competition: 0.26, suggested bid: 1.04)

 

forecast

 

Based on same bid, from the detailed forecast, it seems like keyword A will get more clicks. But why the suggested bid is even lower when the competition is higher? 

2 Expert replyverified_user

Re: Suggested Bid vs Competition

Top Contributor
# 2
Top Contributor

Hi,

 

It's not only about the competition here, there are various factors that are taken into consideration when the Keyword planner suggests these bids. The account history, average CPC the advertisers have been paying for that keyword depending upon the location and other metrics.

 

Apart from this, I would also say that these are all approximations and not exact figures. Advertisers could use them as a benchmark but shouldn't blindly trust everything. These numbers could vary a lot when you actually implement the keyword inside the account.

 

Read this help center doc for more insights:- https://support.google.com/adwords/answer/3022575?hl=en

 

Pankaj

Re: Suggested Bid vs Competition

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

Does keyword Planner suggest keyword max CPC according to account performance..? Then How can I Analyze the competitive bid amount..?

Re: Suggested Bid vs Competition

Top Contributor
# 4
Top Contributor
Hi Citylux S,

Let's look at the data you provided above. A shows 439.24 impressions and B shows 70.76. Right away I would expect more clicks from A,

CTR for A shows 0.4%. That's really low for CTR unless it's a GDN campaign. CTR for B shows 0.0%. This reinforces the expectation from above.

What we don't see is is QS for these keywords. If your QS is higher than your competition, you pay less. Search keywords need a minimum AdRank to appear on the page at all. It could be that the QS across all accounts for this keyword is historically low, so a higher bid is required for your ad to show.

Also, A is showing a lower average position. A higher bid may improve your position for that keyword.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords