Setting Keywords Max Bid
There are many different factors included when considering your max bid for each keyword. The most popular keywords will cost more than the least popular. The higher quality keywords will have the lower minimum required for active bid, Google favors quality keywords. The higher the quality keywords the better performance your ads will be. Thus, your AdWords ads projected to be more successful.
How To Recognize Quality Keywords
How do you determine the quality of your keywords? The easiest way to recognize the quality keywords is by looking at the minimum bid required for each keyword to become "active" for search. If a keyword required minimum bid is $0.5 or lower to be active for search, than that keyword would consider as a high quality keyword.
As A Rule Of Thumb
As a rule of thumb, don't start your keywords max bid higher than $0.15, especially if you're new to PPC advertising. If your keywords minimum bids are higher than $0.15 - $0.20, then your text ads and your keywords have very little in common. Either modify your text ads or remove those keywords with the high minimum bids if you're satisfied with your remanding keywords. Remember an "Inactive for search" keyword doesn't mean inactive for content search. You might not get clicks through the searched keywords or phrases, but you might get clicks through Google's content search.
Sometimes Google set keywords "Inactive for search" for unknown "to public" reasons, but we'll focus on the elements that we can control.
Side Note: Don't try to bid for the 1st position.
Bid enough to get your ad on the first page. By being on the first page,
your ad has a high probability of "Click-Thru
Rate" (CTR). Google rewards your ad if it has a high CTR by charging
you less per click.
Broad Match, Phrase Match, and Exact Match Bid
There are other factors to consider when placing your max bid such as broad match, phrase match, or exact match. You wouldn't bid broad, phrase, and exact match with the same max bid. You would bid higher with the exact match than you would with the broad match keywords. The exact match keywords may produce fewer clicks, but they usually have higher sales conversion.
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