Google Adwords – a Google Service, which allows advertisers to rule their ads campaigns and control their expenses, works in an auction mode. It means, that the system controls, which ads will be shown more often, depending on the bid value, made by an advertiser.
For example, we’ve got two different ads from two companies. The first company is ready to pay 1$ for one click (that’s their ads CPC); when the second one is ready to spend 2$ for one visitor. It’s obvious, that the system will show the second one more often due to its higher bid.
Simple logic says that each advertiser needs a maximum bid-value, so that he could limit his expenses on this campaign. Google Adwords has such a tool, which is called ‘maximum bid amount’.
It works simply: you just set the amount of money you are ready to pay for one click. The system will limit your spends on this level, so that you won’t lose more, than you can afford!
In most cases, you’ll even pay less than the maximum bid value, because your ads can be shown on some less-relevant resources. Another example, – you ads will be presented on some position, other than the first. It automatically decreases the price of one click for an advertiser.
Manual CPC bidding is an extremely important tool and Adwords clients use it often. Count your own maximum affordable click cost and set it as a maximum bid for your campaign.