Google Adwords Bid Optimization

If you’re new to Adwords, which I still am pretty new, it can seem very overwhelming. But once you get the basis of it, it is easy to learn and efficiently use for any business.

I am going to get tell you relevant words to know, but in this post I will only discuss two of them.

PPC/ CPC (pay-per-click/ cost-per-click) is what most small business marketer’s use. Your cost is based on the number of clicks on your ad. You can choose manual or automatic bidding. CPC is the default cost you see when you make your ad.

CPM (cost-per-impression) is best for branding. You pay based on every one thousand views – not the actions taken. This option is only available if you are advertising in the Google AdWords Network only.

CPA (cost-per-acquisition) is a more advanced bidding process. It requires you to have conversion tracking, and has a number of other criteria you must meet. You cost out your ads based on what you are willing to pay for a specified ad conversion._ For example, if your ad’s destination URL links to a product page on your ecommerce site, or an email-gated landing page, Google tracks the conversions on your pages. You are charged based on each acquisition.


Okay so lets discuss what this means more in depth!

CPC is the basic method of budgeting your Google Adwords . It gives you the ROI, meaning that you only pay when someone is clicking on your add. If people are not clicking through your websites, social pages, or social sites then you are not held accountable to pay. At first this was a little strange to me because I am just used to TV commercials, radio, and print. Now that I know this exists and have learned in depth information on it, it makes a lot of sense and shows why digital marketing is becoming so popular.

If  you’ve never advertised online, you’ll also need to get used to budgeting on a daily basis. This is pretty simple to calculate. Just take your weekly, monthly or quarterly ad budget, and do the math to get your daily budget. For a first time campaign, from what I learned I’d suggest starting in the $20 – $50/ day range. You can change your budget at any time. Monitor your ads. If you’re getting great results – increase your ad spend.

That is what’s nice about Google Adwords, it gives you the ability to run ads at any time of the day and only certain days if that’s what works best for your business. You are able to analyze what is reaching an audience and creating positive responses and set that to get the best results.

When you use PPC, like I mentioned previously you have the option of automatic or manual.

Automatic bidding means you let Google determine your CPC for each keyword you’re using in your ad campaigns.

When you are setting up your new ad campaign, in the Budget section:

  • Select “AdWords will set up my bids to help maximize clicks within my target budget” for your Bid strategy
  • Set your Budget as the amount you are willing to spend per day

Manual bidding means you get to choose your Maximum CPC for each keyword. Manual bidding gives you the flexibility to fine-tune your ad targeting for your business needs.

To technically make a manual bid CPC ad:

  • Choose “I’ll manually set my bids for clicks” in the Bid strategy
  • Set your Default bid – this is your Maximum CPC (the maximum you’ll pay for ads in an ad group)
  • Set your Budget as the amount you are willing to spend per day

Now if you’re just starting to get familiar with Google Adwords I would suggest sticking to automatic because it will make everything simpler for you. Once you have been using Google Adwords efficiently for awhile, then I would suggest trying manual bidding because that allows you to freely adjust your performance .

With manual bidding it is pretty cool because you can control which keywords you want to spend more of your budget on. This means you can get a lot ore strategic in your advertising ROI and business objective targets.

Google Adwords has a lot to offer, this is just a small portion of it. If you have never used it, I would highly suggest it because it will highly benefit anyone that knows how to use it.


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