why bid outside of the five cent increments?

4 replies
I've heard this thrown around and I don't understand "the penny trick" in regards to bidding for clicks on a ppc platform.

What does it mean to bid outside of the five cent increments?
#bid #cent #increments
  • Profile picture of the author CDarklock
    Originally Posted by laganja View Post

    I've heard this thrown around and I don't understand "the penny trick" in regards to bidding for clicks on a ppc platform.
    If someone has bid 45 cents for a keyword, a bid of 46 cents will win just as much as a bid of 50 cents will.

    But it will cost 4 cents less per click.

    Expand this across several million clicks. After five million clicks, winning the bidding by a penny instead of a nickel has saved you $200,000.
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  • Profile picture of the author David Bryant
    Well, I think that CDarklock has that question covered.

    On another note, if you are planning on using Adwords for PPC, then be sure to focus on your quality score. You could effectively be paying much less than your competition and achieve a better ad position if your own ad is well optimized. Instead of adding pennies in your campaign, you'll be taking them away.
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  • Profile picture of the author laganja
    what factor affects the quality score ?
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    • Profile picture of the author tryinhere
      Originally Posted by laganja View Post

      what factor affects the quality score ?
      some things to look for are

      keyword
      keyword in the ad text
      keyword / related keys on the land page

      a well written ad that is positioned well by good ad / max cpc setting will also help and enable a good click through rate.
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