Why go high CPC bid in order to test CTR?

chuawenching · 10-20-2010, 07:15 PM

Hi everyone,

I have a question which I notice some of the videos and wso do this. Not sure why.

In order to test adwords, pof, etc .. they will always go for USD$1 bid for CPC even though the minimum CPC bid is maybe low as USD$30 or USD$50 in order to test for 1 - 2 days CTR. Then from there, will see the results ... optimize and remove the ones that are not doing well, reduce it and then slowly lower down the CPC to a lower rate.

Why can't I start with minimum bid to see the CTR for my ads? what makes the difference here? Is it because if i place USD$1 for my bid, my ads will appear higher than other competitors?

any help?

Lucid · 10-21-2010, 07:13 AM

Basically, you should bid whatever you feel comfortable with and can make a profit. However, remember that your position is based partly on your bid. If to get on the first page you need to bid $1, don't expect to get much visibility if you bid $0.10. Few people will go to the second page (in general, about 20% will) and less to the third or beyond.

Your absolute CTR will be lower in the lower positions. Different industries will have different CTRs for the same position. In some, even in the first spot and great ad quality, it may be a struggle to get a rate of a few percent. In others, you can get the same percentage in 8th place (which could mean the top spot gets 20%+). So your CTR is not telling you anything. That's why Quality Score was invented. QS takes into account the position and is telling you how well you are doing compared to others.

You could start with a low bid. Your QS will tell you how well you are doing, even well below first page. But I recommend bidding enough to get on the first page. This way, you maximize your exposure and can test more quickly. Traffic converts better too.

What you need to do is test a couple of ads at a time. Wait till you get 20-30 clicks on each. Pause the lower CTR and repeat with a new ad. The idea is to get your QS up over time because this lowers your costs and increases your position naturally.

There's more in the Adwords FAQ.

10-20-2010, 07:15 PM	#1
chuawenching A Day dreamer Join Date: May 2009 Location: Selangor, Malaysia Posts: 266 Thanks: 100 Thanked 21 Times in 13 Posts	Why go high CPC bid in order to test CTR? Hi everyone, I have a question which I notice some of the videos and wso do this. Not sure why. In order to test adwords, pof, etc .. they will always go for USD$1 bid for CPC even though the minimum CPC bid is maybe low as USD$30 or USD$50 in order to test for 1 - 2 days CTR. Then from there, will see the results ... optimize and remove the ones that are not doing well, reduce it and then slowly lower down the CPC to a lower rate. Why can't I start with minimum bid to see the CTR for my ads? what makes the difference here? Is it because if i place USD$1 for my bid, my ads will appear higher than other competitors? any help?

10-21-2010, 07:13 AM	#2
Lucid Senior Warrior Member Join Date: May 2009 Posts: 1,143 Thanks: 11 Thanked 129 Times in 121 Posts	Re: Why go high CPC bid in order to test CTR? Basically, you should bid whatever you feel comfortable with and can make a profit. However, remember that your position is based partly on your bid. If to get on the first page you need to bid $1, don't expect to get much visibility if you bid $0.10. Few people will go to the second page (in general, about 20% will) and less to the third or beyond. Your absolute CTR will be lower in the lower positions. Different industries will have different CTRs for the same position. In some, even in the first spot and great ad quality, it may be a struggle to get a rate of a few percent. In others, you can get the same percentage in 8th place (which could mean the top spot gets 20%+). So your CTR is not telling you anything. That's why Quality Score was invented. QS takes into account the position and is telling you how well you are doing compared to others. You could start with a low bid. Your QS will tell you how well you are doing, even well below first page. But I recommend bidding enough to get on the first page. This way, you maximize your exposure and can test more quickly. Traffic converts better too. What you need to do is test a couple of ads at a time. Wait till you get 20-30 clicks on each. Pause the lower CTR and repeat with a new ad. The idea is to get your QS up over time because this lowers your costs and increases your position naturally. There's more in the Adwords FAQ.
	Adwords Management Services: Because Successful Campaigns Don't Happen by Accident