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Does Google Inflate Bid Price When Setting Bids

by Jake Howard
1 replies
  • SEO
    • |
Hi All,

I was using Adwords to target a particular keyword on my original website. I was getting a few clicks for this particular keyword, although I admit that my landing page and domain wasnt the greatest for this particular keyword.

So I went out and got a better domain and landing page so I could be more successful with this keyword.

What has happened though, is that despite having a more relevant domain and landing page, and a higher click through rate, I seem to be paying more per click, than what I was paying with my lesser performing site only a month or so earlier.

Anyway, I was hoping some of you guys might be able to answer the following questions.

1. Is it a general rule that the better quality ad, landing page, CTR etc the less the clicks will cost you?

2. Do new sites just starting with adwords generally pay more per click, and end up paying less once they have proved themselves?

3. Does setting a high daily budget encourage Google to charge you more?

4. Does allowing Google to set the bid price encourage Google to charge you more?

Cheers

Jake
#bid #bids #google #inflate #price #setting
  • Profile picture of the author Lucid
    1. Yes, better ad quality (quality being CTR) will get you lower costs.

    2. No. The only metric is ad quality (your CTR compared to competitors).

    3. No. The only metric is ad quality.

    4. No. The only metric is ad quality. But what happens in this case is that the system will try to position you as high as possible given your quality and other factors, mainly your competitors. Remember that the system will try to maximize potential revenues. If your quality is poor, you may not get very high. I don't even let the system decide for me, preferring to have control myself. And I would never use this strategy having poor quality.
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