Determining the right Bids on keywords

14 replies
  • |
hello, i'm kinda new in PPC and i just wann ask if the keyword planners estimate on bids for keywords accurate? if not how can i find out the correct bid estimate? thank you!
#bids #determining #keywords
Avatar of Unregistered
  • Profile picture of the author YourGoToWriter
    I cannot say it's 100% accurate, but I find keyword planner reliable.
    {{ DiscussionBoard.errors[11364987].message }}
  • Profile picture of the author dilipcybex
    There are not many reliable options to do it. You just have to rely on your experience or the data you get.
    {{ DiscussionBoard.errors[11365070].message }}
  • Profile picture of the author Laksh
    There is no correct bid rate in my understanding. That is a variable which changes every time an ad/keyword is considered. Two people can bid same keyword at same exact price, but platform (Bing or Google) will charge both of them based on ther factors too. One might get charged less than the other or vice versa.

    If you just want to know how much to start off with, you can try,

    -Just use 1% of your payout (one of the suggestions I hear most commonly). (Not ideal for every offer, every industry)
    -Go by what the platform suggests/tells you, if you are comfortable with.
    -Start with what you are comfortable with. Say, if you want to try with a limited budget of 100$, try with may be 1$. This will get atleast 100 clicks to start your analysis (100 click might be sufficient for proper analysis, but can help u get started)

    Remember that platforms will not charge the comple bid rate even if you set them to higher. They charge based on current rates. But if you set the bar high, you may be jst starting the chance for a bid war

    Once you have some campaign running, you will be able to figure out easily, what is better rate.

    Also, one other advice is, don't keep increasing ur bid rate jst because the platform is suggesting.

    Jst my 2cents.
    {{ DiscussionBoard.errors[11365314].message }}
  • Profile picture of the author solarwarrior
    it is not 100% accurate cause the data is an aggregation based on a year data. You will only know the real bidding price after you start bidding on your campaign.

    Offers 1-1 Coaching for Bing/CPA/Clickbank.
    1,248 students have benefited so far!
    {{ DiscussionBoard.errors[11365546].message }}
  • Profile picture of the author Awais_Afzal1
    Originally Posted by admaximizer View Post

    hello, i'm kinda new in PPC and i just wann ask if the keyword planners estimate on bids for keywords accurate? if not how can i find out the correct bid estimate? thank you!
    I would say you should go with your network epc first. Grab some data from Adwords or bing and scale up your conversion. Use manual bid strategy and pay close attention to the quality score. It will slow down your bid price.
    {{ DiscussionBoard.errors[11366102].message }}
  • Profile picture of the author mostCPA
    There are many ways to set initial bids; including ones I didn't even mention such as the $1/$5/$10 method in which every ad group starts with a semi-competitive number just to see what happens or the 'instinct method' where you've been doing PPC for so long, you're just good at guessing some initial bids and don't even bother to look up any numbers before setting the first bid.
    Personally, I feel the hybrid approach is the best method for most companies. It will help to ensure you can get some traffic and to see if you can hit your target CPAs with your keywords, bids, ads, and landing pages. When you first start accounts, you usually make few adjustments in the first week to month (depending on account size) as you are accumulating data to determine bids, negative keywords, tests, etc that you need to set bids that have a chance of giving you the data necessary to work with so that later on in the account's history you can make data-driven decisions.

    Also, you can't control the Max CPC bids and quality scores of other advertisers but you can place your ads in at a level where they will be profitable at your own ideal Max CPC. The factors which could be holding back profits possibly includes the conversion rate of the website, the product/service price, or the quality score of the keywords.

    The basic formula for working out the ideal Max CPC amount for a keyword is:
    Ideal Max. CPC (highest profits) = Average Conversion Rate x Average Profit per Conversion x 0.70
    Ideal Max. CPC (set CPA) = CPA Target x Average Conversion Rate x 1.2
    Ideal Max. CPC (set ROAS) = Average CPC x (Average ROAS / Target ROAS) x 1.2
    Ideal Max CPC Examples

    Example 1
    Average Profit per Conversion = £25.00
    Average Conversion Rate = 2.0% (2 sales for every 100 clicks) = 0.02
    Ideal Max. CPC (highest profits) = 25.00 x 0.02 x 0.7 = £0.35

    Example 2
    CPA Target = $80.00 Per Lead (willing to spend $80.00 for each lead)
    Average Conversion Rate = 15% (15 leads for every 100 clicks) = 0.15
    Ideal Max. CPC (set CPA) = 80.00 x 0.15 x 1.2 = $14.40

    Example 3
    ROAS Target = 12 (aiming to get £12 for every £1 spent)
    Average ROAS = 6 (currently getting £6 for every £1 spent)
    Average CPC = £0.20 (currently spending £0.20 per click)
    Ideal Max. CPC (set ROAS) = 0.20 x (6 / 12) x 1.2 = £0.12
    {{ DiscussionBoard.errors[11371032].message }}
  • Profile picture of the author mohdmacki
    Average it down using the price given by keyword planner and increase it by $0.10 that could be the best bid that can get you on top rank faster once any advertiser backs off or shuts off the advertising etc
    {{ DiscussionBoard.errors[11371138].message }}
  • Profile picture of the author Jeny89
    you will learn this by experience...
    {{ DiscussionBoard.errors[11371199].message }}
  • mostCPA mentions setting a bid to be semi-competitive. I would partly agree: you need to be competitive, that's the whole point of advertising. If you set a bid that's too low, not as competitive, you may not show your ads as often which defeats the purpose of advertising in the first place.

    Now, if you are starting out, chances are you will not have great quality. This means you'll have to bid more aggressively (more competitive) but you'll be paying more too.

    But essentially, it depends too on your goals. You may not want or need to be at the top of the ads and show your ads a small percentage of the time.In that case, you could be less aggressive in your bidding. I do suggest however to try improving your quality no matter your goals.

    Keep in mind as Laksh said, things change all the time. A bid today satisfying your goals may not do so tomorrow. These bid suggestions are not set in stone. PPC is not about bidding and managing budgets as unfortunately too many people believe. The best thing you can do for your campaign is improve quality.
    {{ DiscussionBoard.errors[11371377].message }}
  • Profile picture of the author Techly Solutions
    Honestly speaking , you have to rely on the keyword planner & rest it all depends on your experience. Moreover, keyword price get decreased later depending on your add rank & quality score.
    {{ DiscussionBoard.errors[11386451].message }}
  • Profile picture of the author electricguitar
    When it comes to pay-per-click (PPC) and paid ads, a lot goes into these campaigns. You have to create the landing page, design the ad, and set up a framework for the campaign. Not to mention A/B testing various aspects of the ad and landing page.

    Step 1: Brainstorm
    Step 2: Choose Local Search Keywords
    Step 3: Think About Relevance
    Don't Forget Negative Keywords
    Step 4: Consider Competition and Cost
    Step 5: Get Some Tools

    By following these 5 steps you can determine the right birds on your keywords.
    {{ DiscussionBoard.errors[11390579].message }}
  • Profile picture of the author simplio
    If you want to find this, you can use the keyword planner. It will help you in knowing the best keyword for your PPC.
    {{ DiscussionBoard.errors[11402245].message }}
  • Profile picture of the author jonnyg13
    They are fairly accurate but it depends on the quality score of your ads. You just have to test it to really find out, but you'll generally want to bid higher to start with and lower it as time goes on and the score goes up.
    {{ DiscussionBoard.errors[11402928].message }}
  • Profile picture of the author portablesys
    Here are the few best tips to determine the right bids keyword.
    Setting Bids Based Upon Estimated Conversion Rates
    Accumulate Lots Of Clicks To See What Works
    The Hybrid Approach: Traffic & Conversions
    Just Bid High, Build History, & See What Happens
    Know Where You Want To Go
    {{ DiscussionBoard.errors[11419544].message }}
Avatar of Unregistered

Trending Topics