Bidding on Keywords

June 17, 2009 · Print This Article

by Brian Basch

PPC campaign management is a vital part of your advertising campaign. You will need to keep an eye on your PPC campaign if you wish to make serious money from it. An area that requires attention is the amount you are bidding on a keyword.

Proper bidding on keywords is absolutely vital to a campaign since it will determine the placement of your keywords. Since studies have shown that searchers very rarely see more than five pages of search results, you will want to get your ad on the first three to four pages. This being said, you should remember not to go overboard trying to get that #1 position. With six to ten ads on the first result page, you can get a lower position for cheaper and still have a great position on the first page.

Improper bidding can cause you to lose a great deal of money. If you find yourself in bidding war, you need to analyze just how much the top spot is really worth. If your product has a great profit margin and you can afford to spend a bit of extra money on a great position, then maybe you can partake in a bidding war. If not, avoid them at all costs. They will usually end up losing you money.

Another factor you need to consider when bidding is profit point. If you are paying more for clicks than you receive for the sales generated by those clicks, you are losing money. By analyzing you sales conversions and your profit per sale, you will be able to come to an appropriate bid which will maximize your profits.

Without good bidding, your campaign can never live up to its potential. Poor performers in too high a position will cost you too much money. At the same time, if a keyword is doing well in a lower position, it probably means that keyword is hot. When this happens you will want to increase your bid and get that keyword into a higher position so you can make more money.

Make sure you keep your PPC advertising campaign’s keywords in control. Things can pick up pace quickly and you will find yourself out a considerable amount of money. Because of this, PPC engines offer daily budgets which can help to limit losses. These help in the beginning of a campaign as you tweak and optimize the campaign. They will save you money and can be removed at anytime.

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