When bidding for keywords on AdWords most people will tend to set a maximum bid price that they are prepared to pay for their clicks.
What they don’t know is that there are three other ways to bid and one of those might be much better for them.
AdWords is getting more and more competitive these days so we all need any advantage we can get. Changing your bidding style might just be that silver bullet that puts your AdWords campaigns in the driving seat.
So, let me explain all four bidding options to you and tell you how to set them.
This is the normal bidding style that people use. It’s the default setting when you start a campaign and it’s basically telling Google the maximum you are prepared to pay for a click.
Preferred Cost Bidding:
In this case you set an average price you are prepared to pay for your clicks and Google manages your account for you to even out the amount you pay for clicks so that you are charged this average amount over time.
Here you don’t set a bid price at all. You simply set a 30 day budget for your campaign and Google will manage the bid prices for you within that budget. You cannot use this for content bidding campaigns and if you have any content bids mixed into your search network campaigns (shame on you!) they will be turned off if you select this bidding option.
This is their latest bidding option. It’s also called cost per acquisition bids. With this option, you set a price that you are willing to pay for a conversion and Google will manage your click bidding in order to deliver conversions at that price.
Clearly for this option you will need to have conversion tracking on your campaign. Another limitation is that your campaign must have over 200 conversions in the last 30 days. This is because Google uses conversion history to determine the bid prices it will set on your behalf to get conversions at your requested price.
So how do you set these options?
Simply go to your Campaign Settings and look under the section Advanced Options. The first option is Keyword Bidding. Just click on the View and Edit options link and you can select one of the four bidding options for your campaign.
One question I have been asked is which of these options is best. Well as I always say, you need to test to see which works best for you because all businesses are different and what works for one may not necessarily work for another.
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