Deciding the value of maximum bid price for Adwords

We’ve already told about the maximum CPC value in the previous article. We had described, what does this term mean and what is this tool used for. We’ve got to know, that this tool is widely used for limiting your expenses on the ads campaign. Thus, it lets limit your advertising budget and plan it more wisely.

However, if you are just creating the ads campaign, you don’t really know the value of maximum bid you’d like to set. So you’d like to know this price, set by your competitors, in order to aim their rankings in ads results. You can get this information with the help of several tools. All of them are developed by Google.

  1. Bid Simulator. The most useful service for you maximum bid research is a Bid Simulator by Google Adwords. It’s a service, which predicts the number of visitors for your website, according to the price of each click you get. This tool will show you, how many impressions will be done if you set the maximum bid to X,XX dollars. This approach could help you to predict your ads budget.
  2. Keyword Planner is another useful tool if you are launching your Adwords campaign. It helps discovering the amount of visitors for your website, using the keywords you found. Besides, it allows you to get the estimated expenses for this ads campaign.
  3. First-page bid estimates – the third service that we’d like you to use in your Adwords campaign. It shows, how much putting your website on the first positions of Google search will cost for you. It’s a perfect tool for those, who needs top positions for their ads in some niche keywords.

Manual CPC bidding for Google advertisers

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.

Automated bidding vs manual

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.