The mystery about Low Bidding

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If you bid too low your ads will display little, or not at all.

I think you may be a little confused about how to bid on keywords. While it is true that bidding low will lower your CPC (Cost Per Click), it doesn’t always translate into a lower CPA (Cost Per Acquisition), which is a far more important metric than CPC. However, neither CPA nor ROI is nearly as important as maximizing total profit, which should be your primary objective.

Often bidding higher will increase impressions, CTR, and conversions to the point that you make more total profit than could ever be possible with a lower bid.

The key is to determine the average value per click for a particular keyword and then bid at, or below, the value per click average to see where “click volume” and “value per click” combine to yield the highest total profit.

The bottom line is that you need to test both high, medium, and low bids, gather data and allow that data to inform your decision-making process, otherwise, you are just making wild guesses.

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