Bidding is the process of setting the maximum price for one visitor you are ready to pay. Adwords uses it as the main principle of defining the position of an ad.
If you are a publisher, the system gives you an opportunity to choose, whether you’ll set the bid manually or you’ll do it automatically. This article concerns the differences between automated and manual bidding in Adwords.
So, let’s start from the manual price setting. It’s a handy, routine job, which needs you to analyze the bids of your competitors in a certain niche and to modify your bid as often, as it’s possible. Your bid depends on the aim you have – it can be, for example, a second place taking or a third one; or just purchasing some cheap traffic. You can edit your bids for each different keyword, what can be a flexible tool for your business.
The alternative for such an approach is automated bidding. It’s much simpler and easier task, because you delegate the setting a price for one click onto the system. You just need to define, which position you’d like to take, and Adwords will run your campaign automatically.
The functionality of Adwords lets you analyze much. You can learn how the automated bidding was done, what the strategy of a system was and which results have occurred.
Adwords specialists claim that it’s much cheaper to run manual bidding; however, some large campaigns can start with automated one in order to learn the behavior of users and the conversion.