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I have no idea how to bid

Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

From my *organic* search, for similar keywords, I've calculated that each unique visit is worth about $7.


Basically that's all I have based my bids on - get as much traffic as possible while staying under $7. The more I can stay under, the better.


But strategically... What the heck am I supposed to be looking at to optimize? I don't want to be paying $6 when I could be paying $4. What keywords should I bid higher on? What match types?


Can someone give me a quick rundown of their process for setting bids?



Re: I have no idea how to bid

Visitor ✭ ✭ ✭
# 2
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Hi Birchlore,


First of all, design a good structure and match type strategy. Depending on the complexity of your offer, split your campaigns and adgroups as much as possible and use a small set of keywords within each adgroup. Don't use more than 1 or 2 broad terms. And several phrase and exact. 

i.e. Instead of having 1 adgroup containing Jeans (Men's, Women's, Blue jeans, Cheap jeans...) split that out and have different adgroups for each modifier.

Secondly, start with conservative bids to begin with. And keep the following order from highest to lowest within the same adgroup: Exact > Phrase > Broad. You want your exact keywords to be the most competitive ones, as these will be more tailored to the queries than the broad match keywords. 

i.e.  jeans (broad match): $0.9
       "jeans" (phrase): $1.3

       [jeans] (exact): $1.9

I just made those figures up to show the order by match type - you should be aware of the competition in your market. If there is no competition then you are lucky, and you should worry just about keeping your CTR as healthy as possible



As a third point to consider, you will have to manage your bids at keyword level, based on profitability. You can monitor your overall CPC and Cost Per Lead (per sale, sign-up, or whatever your revenue metric is) to have an overview of overall performance, but you should base your bidding decision on the performance of each individual keyword. As this can vary dramatically.

Lastly, but not less important, is to have a clear view on how the auction works. There are two main elements to determine your exposure, that are Quality Score (Mainly CTR and several other factors) and your CPC bid. Nobody knows the magic formula, but to start with, take into account that having good CTRs will make your CPCs cheaper.

Focusing only on CPC, if you are bidding $6 on a keyword, and another advertiser is bidding $1.5, you will be very likely to be paying $1.6 for that click.

For terms with very low competition, and high click-through-rates, even if you set a bid of $7, you will be likely to pay just a few cents.


You should analyse performance at keyword level for bidding decisions (You might see keywords with CPL of $1 and others with a CPL of $35) and monitor your overall profitability.



Hope that helps!  

Re: I have no idea how to bid

Follower ✭ ✭ ☆
# 3
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Awesome, that's great.


Quick question:


Is broad match modifier more or less specific than phrase match?


(i.e. would I bid more on a BMM keyword or phrase keyword?)

Re: I have no idea how to bid

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# 4
Visitor ✭ ✭ ✭

Exact > Phrase > BMM > Broad


BMM sits between broad and phrase. It gives you more control than broad and more flexibility than phrase. It is basically like phrase but you don't have to match the words sequence


i.e. if you use "white table" you will only match to queries with that sequence (buy white table, white table online...)

if you use BMM +white +table, you will match to any query containing white and table, regardless of the location of those words within the query


There is not a general rule for this. It also depends on the nature of your keywords, whether they are long-tail or high volume keywords, and more importantly your budget and goals.