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Incorrect Bid increment suggestion by Adword

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

Hello Members,

 

PFA screenshot from one of account where adword advised to "increase first page bid" than current CPC but servicing 

What can be possible explanation to this?

 

Firstpositionbid.png

2 Expert replyverified_user

Re: Incorrect Bid increment suggestion by Adword

Top Contributor
# 2
Top Contributor
Hi Amol,

This stats for average position is the average.
So, sometimes your ads may be shown at 1st position and sometimes at lower.
Might be there are a lot of competitors bidding for same keyword but at the time when your ads were shown, their ads may not get shown due to some ad scheduling or any other settings or ran out of budget/paused the keyword.
So, there may be any reason.

Better is run your keywords for atleast 2 days(week days) with the same bid, you will definitely loose the average position.
This estimated bid does not change within a minute or few minutes as its not real time but yes it is determined on the basis of bids of all other advertisers bidding for the same keyword.

Regards
Archit, AdWords Top Contributor, Community Profile
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Re: Incorrect Bid increment suggestion by Adword

[ Edited ]
Top Contributor
# 3
Top Contributor

Hello, Amol.

Having your ads shown every now and then in spite of a bid which is lower than the FPB estimate does not mean that the estimate is wrong.

Please check the impression share metrics you have for those keywords and you'll then see how much of the available impressions are lost because of bids and/or budget.

Hope it helps.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: Incorrect Bid increment suggestion by Adword

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭
Received exact same reply from Google help....Thanks for help

Re: Incorrect Bid increment suggestion by Adword

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
I am not saying it completely wrong...but just misleading.

I don't understand how lost impression by rank or budget will help to understand this..

Re: Incorrect Bid increment suggestion by Adword

Top Contributor
# 6
Top Contributor
Hello.

Let's say there are about 1000 searches every day for a keyword. The average minimum bid required to participate in an auction is 3 GBP. If you bid higher than that (sometimes significantly higher) and also have enough budget, your ad will show every single time someone searches for something that triggers your keyword. And your impression share should be close to 100%. Or even 100%.

Now let's say you only bid 2 GBP. That means most of the time you won't take part in an auction and your ad does not get a chance to show. However, every now and then, when there's less competition (competition runs out of budget, bids lower, etc.) your ad gets to show. And when it does, the average position is what you see in the interface.
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: Incorrect Bid increment suggestion by Adword

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭
Agreed but then as it's RTB, still I guess google still take time to reflect it...