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What determines the min bid if no other bidders? (Yes I've searched)

Badged Google Partner
# 1
Badged Google Partner

I'm not a new advertiser but this didn't relate to other topics.  

I'm mystified and curious about how Google determines the minimum "first page" bid for auctions with no competition. 

I've seen some conversations on the forum but nothing that hints as to WHAT may determine these minimum bids. I have one AG with min "first page bids" suggested .20 to $1.25 and different "top of page" bids up to $3.75.


I'm curious if there are types of KW that have higher bids. EG do adult KW have higher bids, etc. 

Also, with no other bidders, does "first page" vs. "top of page" mean? Aren't they always at the top if there are no other bidders? Thanks!

Colin Donohue
Root Deeper Marketing
2 Expert replyverified_user

Re: What determines the min bid if no other bidders? (Yes I've searche

Top Contributor
# 2
Top Contributor

Hello there;

Long gone the days with no competitors. I doubt if you could find a single keyword (with the exception  of scientific / engineering / medical academic  terms) which hasn't been bid. And even if you don't see the competitors, that doesn't mean they are not there.

Thus, the minimum bid is based on all other advertisers  who have been bidding on a given keyword. In other words: Google has set a minimum bid (or a minimum ad-rank) for your ad to be shown.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: What determines the min bid if no other bidders? (Yes I've searche

Participant ✭ ✭ ☆
# 3
Participant ✭ ✭ ☆

Hi Colin,

 

Just to add to Moshe's already excellent answer, I thought you might find this article interesting. Google addressed this exact question, back in 2006.  Although it's been a long time since this article was written, I don't believe anything has changed. Google indicates that even when only one advertiser is in the auction, quality still weighs heavily into bid minimums.  

 

I would add (as a personal opinion, only) that Google has to determine which terms are worth including in the AdWords system.  That's why they don't show low volume keywords and likely  influences bids for keywords with only one or a few advertisers.  

 

Hope this helps Smiley Happy

Re: What determines the min bid if no other bidders? (Yes I've searche

Rising Star
# 4
Rising Star
Hi Colin,

I agree with Moshe & Amy here. There is always competition on the SEM front in any targeted verticals ( except for the ones Moshe mentioned, of course). Depending on the competition for the keyword(s), you will always pay atleast one cent more to rank higher than the competitor ranked lower than you.

Also, relevance of your ads, keywords, LP, etc. is a huge factor that will always affect the minimum bid amount that you pay.

Thanks for the great explaination here Moshe & Amy!

Cheers!

Shashank
Cheers,
Shashank Singh, AdWords Rising Star |
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