The Art and Science of how to Bid on Google Adwords

The Art and Science of how to Bid on Google Adwords

Bidding is one of the most fundamental concepts in paid search marketing, yet search marketers and clients need to know important facts. Like: how much should I pay per click, should I focus on ad position, should I purchase software or use Google’s conversion optimizer?

Many tools and software options focus on the math, predictive statistical analysis, to decide how much you should pay per click today to reach your goals. Those goals are usually conversions. Many people focus on the wrong things, like guessing or instincts in an attempt to reach the top position under the belief that if they are the first noticed, then they will get the sales.

Actually, it takes a combination of mathematics and guesswork. Math does play a role in predicting how much you should pay per keyword, but there are times when you need to act on gut reactions and an understanding of your business.

For example, bidding tools may tell you that your ad should be in position five in order to get a cost per sale (CPA) of $10. However, people who click on an ad in position five may be doing research to determine what they want. By the time they click on your ad, they may be so picky that, no matter what you offer, you will not be able to sell to them.

With a simple test of pushing your ad to first or second position, you will see that these spots will get more impulsive buyers. This can bring in more sales. Once you have moved your way to the top position, then you can switch back to the software, which will adjust your bid to keep you in that spot. If you hadn’t gone with your instincts, then you would still be stuck in the fifth position and your sales could still be low.

Contact Adwords Consultant and see exactly how I can help you.

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