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max cpc bid increased up to 10 times

Participant ✭ ✭ ☆
# 1
Participant ✭ ✭ ☆

Hi,

one of my adwords client hire a freelance recently and that freelancer change max cpc bid from 0.60GBP to 6.20 GBP of those keywords whose quality score  is 10 out of 10.When max cpc bid was 0.60 ads position varies from 1 to 3.

 

When I asked that person why did you change the bid so high he said ROI will increase and average position will increase.

 

In my limited understanding it is not good move, we have to pay more for every clicks and ROI will not improve. Please share your views on this.

 

Thanks

3 Expert replyverified_user
Marked as Best Answer.
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Accepted by topic author santosh s
September 2015

Re: max cpc bid increased up to 10 times

Top Contributor
# 2
Top Contributor
Hi there;
I would not recommend that. If the ad is shown in one of the three top positions (i.e. sitelinks could be shown) - I would focus on a landing page which converts!
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: max cpc bid increased up to 10 times

Follower ✭ ✭ ☆
# 3
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Hi

As per my understanding, I wouldn't say this is a bad move considering the keyword has a good amount of conversions. Since you already have a good QS and good conversions, this would help in keeping competitors from taking your position.
Your CPC would rise for sure but not so much that would affect your ROI. Your ROI would probably remain the same or rise a bit but you would avoid losing Returns from these keywords anytime.
I have done the same for the top converting keywords as well but haven't noticed my CPC rising drastically.
So all you would need to do is check if those keywords are the best ones in your account. If they aren't the best ones that it is a bad move raising the bids so much.
This is just as per my knowledge.

Regards
Selvin K
Marked as Best Answer.
Solution
Accepted by topic author santosh s
September 2015

Re: max cpc bid increased up to 10 times

Top Contributor
# 4
Top Contributor
Hi Santosh,

I agree with Moshe! I would never raise my bids that high for keywords already having good QS, converting and average position lies between 1-3. Rather focus on converting landing page as suggested by Moshe. And keep work on raising CTR (as it's the main component of QS). Proper use of Ad Extensions and Formats. 10times increase is way too high.

Thanks
Neha
Neha Gupta, AdWordsTop Contributor Follow Me: My Blog | Twitter | Google+ | LinkedIn
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Re: max cpc bid increased up to 10 times

Participant ✭ ✭ ☆
# 5
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Hi Moshe/Neha,
As I mentioned in first post that a freelancer hired by my client raised max cpc bid very high three months ago on the keywords having QS lies between (9/10 - 10/10). All those keywords brought whole campaign in loss. Now my client is realising that raising max cpc bid too high is disastrous for him.

Now they are asking me to lower the max cpc bid to initial bid (like I was bidding 0.62 pound in the case of 6.20 pound max cpc bid.what would be the consequnces If I lower max cpc bid to initial?

Thanks
Santosh

Max cpc bid raised too high and now want to lowering the max CPC bid

Participant ✭ ✭ ☆
# 6
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Re: max cpc bid increased up to 10 times

Top Contributor
# 7
Top Contributor
Hi Santosh,

As long as your CTR doesn't drop then decreasing your bids isn't going to effect the quality score. Despite the £6.20 bid, what is your average CPC for these keywords?

If you are worried then try gradually decreasing the bids over time and monitor your ad positioning.

ScottyD, AdWords Top Contributor
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Re: max cpc bid increased up to 10 times

Participant ✭ ✭ ☆
# 8
Participant ✭ ✭ ☆
Hi Scotty,
Thanks for reply .Current Average CPC is £ 0.92.

Re: Max cpc bid raised too high and now want to lowering the max CPC b

Participant ✭ ☆ ☆
# 9
Participant ✭ ☆ ☆
Hey Santosh,

I will go with reply of Scotty in mentioned above link. Either you need to explain your client about ad rank which is not only effect with CPC. As you mentioned 0.92 is cost per click you are getting that mean approx less than 1 is great price to show your ad in first 3 result.

I want to know your actual question also because you already got great ans from Moshe and Neha.
Marked as Best Answer.
Solution
Accepted by topic author santosh s
September 2015

Re: max cpc bid increased up to 10 times

Top Contributor
# 10
Top Contributor
If you are happy with your current position then it might be worth dropping it around that mark, perhaps to £1 for example, again just check to see how your positioning is after that. Then gradually drop it little by little until you are happy with both your position and CPC.

ScottyD, AdWords Top Contributor
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