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what happens if i enter a lower bid than competitors

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Doing a quick estimate of what competitors spend shows £3 per day low. If i was to bid bellow that does it mean my ads will still be seen, just lower down the page rankings? I f i was to increase it the ad appears higher? Is that correct?

Also if there appears to be no other paid ads using certian keywords i could bid low and appear as the top ad? or is that controlled by price also?

TIA

2 Expert replyverified_user

what happens if i enter a lower bid than competitors

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆

Hi @Shane F

 

Google determines how many ads will show on a search engine result page in every auction - I've seen anywhere from 0-7 ads. 

 

It's not only the bid that determines ad rank. Google's guide on Ad Quality explains that "every time someone does a search that triggers an ad that competes in an auction, we calculate an Ad Rank. This calculation incorporates your bid, auction-time measurements of expected CTR, ad relevance, landing page experience, and other factors."

 

 

To improve your ad position, you can increase your bid, improve the ad quality and/or improve the quality and relevancy of your landing page experience. 

 

Every ad needs to meet a minimum Ad Rank threshold in order to show. This means that even if you're the only person bidding on a keyword, if your ad and landing page aren't relevant, Google may not show your ad.

 

Hope that helps!

 

Allie 

what happens if i enter a lower bid than competitors

Explorer ✭ ☆ ☆
# 3
Explorer ✭ ☆ ☆

HI Shane,

 

Your ad rank depends on 3 factors which are bid, Quality Score, Ad Extensions. So even if you bid lower there are chances that you can appear above your competitior.

 

If there is less competition on certian keywords, then you be charged less and can appear at any position depending on other factors of ad rank.

 

Regards,

Manish

what happens if i enter a lower bid than competitors

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Thanks,

 

So other than those factors, it seems ill be doing a bit of guess work on the bid? Would you suggest start low and see how it goes then increase the bid as necessary? 

what happens if i enter a lower bid than competitors

Top Contributor
# 5
Top Contributor

I tend to start high and then inch down the bid based on the positions.

what happens if i enter a lower bid than competitors

Explorer ✭ ✭ ☆
# 6
Explorer ✭ ✭ ☆

Hi @Shane F

 

I like to start with a high bid to get the ad to show and adjust down as long as I'm happy with the ad rank. I use the Ad Preview Tool to gauge how my ads are ranking. If you start high, monitor closely - you don't want to make the mistake of starting too high and end up blowing the budget in a day! 

 

Best, 

 

Allie

what happens if i enter a lower bid than competitors

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

thank you all,

 

If i bid £3 that is the maximum i am charged per click? But depending on ad quality etc i may be charged £1 per click? 

what happens if i enter a lower bid than competitors

Top Contributor
# 8
Top Contributor

There are two settings - your daily budget and your click bid.

 

your daily budget is how much you are prepared to spend each day and the click bid is how much you are prepared to pay for each individual click.

 

The first is easy - you can keep getting clicks until your daily budget is exhausted.

 

The second is more complex becuase it depends upon what your competition is doing. If they are bidding higher for the keywords for which you want your ads to appear then they will appear above you in the results - and if there are enough of them (and they usually are) then if you bid too low then your ads might not appear at all.

 

Basically, the Quality score (QS) is a factor that Google uses to "level up" the auction. If your keyword, ad copy and landing page is highly relevant to the search term then you will get a high QS - if it has little to do with the search term it will be very low.

 

Basically, Google will multiply your bid by your QS - so if you bid £2 with a QS of 8/10 - your bid is "worth" 16 - your competitor who bids twice what you bid at £4 only has Qs of 3 - so his bid is worth only 12 - you win the auction and your ad appears above his...

 

It's (ever so slightly... not) more complex than this, but this is enough to understand the concept.

 

I do agree with the others, bid higher to begin with to see where things stand...you can't get a good view of the playing field if you're crouching in the long grass.

 

Because the activity of your competitors is a factor here you might find that if you bid too low and have too low a daily budget, you can only "win" slots when your competitors don't want them - i.e. on poor search terms, at three in the morning... more and more AdWords is a case of you get what you pay for in terms of quality visitors.