Advanced Google Adwords Bidding Technique – Part 1

In the previous post, “Basic Google Adwords Bidding” I told you how to bid on keywords with a new account when you don’t yet have any sales or conversion data. Once you begin to collect data, you can make better-informed decisions on how much to bid for each keyword. (Learn a detailed concept of bidding methods with a google adwords consultant.)

When you start your new account, if there are certain keywords that are spending faster than any others, it’s a good idea to lower your bids for those words. Otherwise, you may run through your budget very quickly because of a few keywords. Remember your number one goal: get as much traffic to your website while spending the least possible. When you are able to start tracking your conversions, you can then find which keywords are leading to the most sales and focus your bidding on them. You can also lower bids on keywords that aren’t leading to as many sales.

For example: if your desired CPA is $10, and the keyword “wholesale dog food” has spent $4-$7 at fifty cents per click in the first few hours, but it hasn’t generated a sale, then you should lower the bid. This way, you won’t spend so much money so quickly. Once that keyword spends beyond $10, then it’s too late – the CPA is too expensive and you have lost money. If you lower the bid from fifty cents to thirty cents, then for the next three dollars you spend you will get 10 clicks at thirty cents each instead of 6 clicks at fifty cents each. With 10 clicks, your chances of getting a sale are usually better. (Note: if you bid fifty cents per keyword, you rarely actually pay fifty cents, you will pay less, but I am simplifying things for the example. For more information, read about the Google Bid Algorithm).

In another example, the keyword “cheap dog food” spent five dollars and only generated one sale. In this case, you may choose to increase the bid from fifty cents to sixty-five cents. You may stop and do the math; thinking that if you bid fifty cents and got one sale at five dollars, then you could bid one dollar and get sales at ten dollars. However, since the keyword only generated one sale, you may have just gotten lucky. Don’t jump to any conclusions. Be conservative with money, whether it is yours or your client’s. You can always increase bids if you are spending too little, but if you bid too aggressively, you have lost money you can never get back.

There are a few advanced techniques mentioned here that will be covered in the next blog post.

Feel free to contact an online marketing expert to get a full details about Google adwords bidding technique.