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Why adwords suggested bids are increasing everyday?

by prm
3 replies
  • PPC/SEM
    • |
Hey guys,

The question is in the title. I'm running my first adwords campaign and Google Adwords suggested bids are increasing everyday. The thing is, I'm promoting a very niche product and I'm SURE that's the competition is not so ''competitive''.

What do I need to do? Increasing my bid or staying like that?
Is it normal? Did it already happen to you?

Thanks,

Best,

PRM
#adwords #bids #everyday #increasing #suggested
  • Profile picture of the author dburk
    Hi prm,

    AdWords is an auction based platform, they do not set the CPC prices, your competitors do.

    It's not unusual to see the minimum bid for 1st page placement to increase whenever a new advertiser enters the auction. When you bid high enough to get onto the 1st page of results you have effectively pushed one of your competitors off of the first page, which triggers a bidding war to get back onto the 1st page. prices will rise until at least one advertiser gives up on the idea of having ads on the 1st page of search results. You literally have to get at least one advertiser to give up on the idea of having ads on the 1st page of Google results.

    Also, you might want to pay attention to your Quality Scores. You CPC costs will go higher if your Quality Scores are dropping, even if your competitor's have not adjusted their bids.
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  • Profile picture of the author Hearn
    Most likely more and more advertisers move into this space from TV or other media. I don't expect this to stop soon.

    But like dburk said you could work to improve your Quality Score.
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  • Profile picture of the author bookmarking
    As a matter of being "competitive" , I think some folks are doing better then you. So try to improve your quality score.
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