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Why the suggested bid for a keyword in keyword planner differs from the bid price in AdWords?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

I am new to Google AdWords and facing an issue regarding suggested bid cost for my targeted keywords.

I want to run a search ad campaign and I am facing an issue with the suggested bid price for the keywords. I am confused that what should be the maximum CPC for my each keyword.

For example, What should I supposed to do if in google keyword planner for a keyword the suggested bid is showing as 20$ whereas in my search Campaign ad group for the same keyword the first page bid is showing 5$. Should I set the max.cpc as 5$?

 

kindly help me in this regard.

Regards,

Bibhu Prasad

1 Expert replyverified_user
1 ACCEPTED SOLUTION

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Marked as Best Answer.
Solution
Accepted by topic author Bibhu P
July 2017

Why the suggested bid for a keyword in keyword planner differs from the bid price in AdWords?

[ Edited ]
Rising Star
# 4
Rising Star

Hi Bidhu, first-page bid is an estimated amount you will have to pay to be on the first page, but not in the first position. To be displayed on the top of the page you can use such feature: 


 
But bid would not be 100% accurate, especially for broad keywords due to the auction system. You can also use auto rules and bid to position scripts. I've used such scripts before and I am using them when I am just launching campaigns but at some stage you will have to switch to manual bidding or automated bidding solutions because specific position will not guarantee profit and sometimes it's not profitable to be in top for certain keywords.

 

Cheers, Alexey
UAWC Agency
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer.’

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Why the suggested bid for a keyword in keyword planner differs from the bid price in AdWords?

Rising Star
# 2
Rising Star

Hi Bibhu, suggested bid is just estimated the number, the actual bid is calculated separately in each auction. You need to consider different things when you are choosing a bid such as keywords conversion rate and it's value to your business. You can start with $5 and then check what % of Impression share you are getting to react accordingly. 

Cheers, Alexey
UAWC Agency
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer.’

Why the suggested bid for a keyword in keyword planner differs from the bid price in AdWords?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Hi Alex,

 

Hope you are doing well!

 

 

Thanks for taking your time to answer my question. But again I have a doubt here which is regarding the first page bid price.

When I am trying to run the campaign it shows something called " first page bid" near to the targeted keywords. So now I want to know if I am gonna pay that price will my Ad will show on first page and first position.

I know there are stuffs called quality score which involves landing page, relevant content etc. But still I want to know that if I pay the first page bid price as per google will I rank on top position and in first page.

 

Regards,

Bibhu 

Marked as Best Answer.
Solution
Accepted by topic author Bibhu P
July 2017

Why the suggested bid for a keyword in keyword planner differs from the bid price in AdWords?

[ Edited ]
Rising Star
# 4
Rising Star

Hi Bidhu, first-page bid is an estimated amount you will have to pay to be on the first page, but not in the first position. To be displayed on the top of the page you can use such feature: 


 
But bid would not be 100% accurate, especially for broad keywords due to the auction system. You can also use auto rules and bid to position scripts. I've used such scripts before and I am using them when I am just launching campaigns but at some stage you will have to switch to manual bidding or automated bidding solutions because specific position will not guarantee profit and sometimes it's not profitable to be in top for certain keywords.

 

Cheers, Alexey
UAWC Agency
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer.’

Why the suggested bid for a keyword in keyword planner differs from the bid price in AdWords?

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Hi Alex,

 

Thanks for your quick response and for your nicely crafted answer to my question.

 

Now I got the sound idea of setting bid for my campaign. If in future I will have any doubt I may keep you update.

 

Thanks,

Bibhu