Effective Keyword Bidding Strategies

When doing Pay Per Click Advertising you'll often see "Bid Gaps" emerge among the cost per clicks of the keywords you're bidding on. For example, the top three positions for the keyword "Mortgage" may be listed as:

Position # 1 $1.00
Position # 2 $.79
Position # 3 $.78

In this example the advertiser in the #1 position is overpaying for their traffic. They could lower their bid to $.80 and still maintain their #1 position, while saving $.20 on each click.

Why Bid Gaps Appear:

Often times advertisers in the top position want to put distance between themselves and their competition to avoid having to check each day to see if they're still in the #1 position. Sometimes when companies upload keywords into their Pay Per Click Advertising program they set all their bids to the same amount, regardless of where their competitors have set their bids.

The most common reason why some PPC advertisers create "Bid Gaps" and overpay for their clicks is they're not aware of the tools available from third party vendors, or the PPC Search Engines themselves to avoid these gaps.

Eliminating "Bid Gaps":

Some Search Engines like Google automatically eliminate "Bid Gaps" by ranking ads using a combination of click through rate, and the maximum bid established by the advertiser. Google claims this allows them to offer advertisers the best ranking on the page at the lowest cost, while guaranteeing the ads they display are relevant to the keywords users are searching on. Google's system involves some trust on the part of the advertiser, since it's impossible to tell what you're competitors are bidding. If your competitor has done a good job optimizing their ad copy to achieve a high click through rate, their ad could appear above yours, even if you're paying a higher cost per click.

Other Pay Per Click Search Engines like FindWhat.Com offer an optional 'AutoBid" feature. This feature allows you to specify the maximum you would be willing to pay per click for each keyword, and the system will automatically adjust your bid to $.01 more than the next highest bidder. If your competitor raises their bid the system will continue adjusting your bid until it reaches you maximum bid.

Example:

Current bid for the #1 position: $.50
Maximum bid that you specify using "AutoBid" $1.00
The amount the system will set your bid: $.51

It's important to note that the cost per click may never reach your maximum bid. We highly recommend using automated bidding features whenever possible. These tools allow you to maintain premium positioning for your ads at the lowest possible costs while saving you time from having to check where your ad is ranked every day, and manually adjusting your bids.

In addition to the tools offered by the PPC Search Engines to eliminate "Bid Gaps", there are several third party Bid Management applications that will do the trick. Atlas OnePoint offers a sophisticated Bid Management tool to effectively manage your bidding strategy across 40 different Pay Per Click Search Engines and shopping comparison sites. BidRank is another tool we recommend for optimizing keyword bids, and avoiding "Bid Gaps".

How You Can Profit From "Bid Gaps":

While creating "Bid Gaps" for your own keywords can be a costly mistake, you can often improve the metrics of your Pay Per Click Advertising program by taking advantage of gaps that appear in the bidding strategy of your competition.

Example:

Position # 1 $1.00
Position # 2 $ .79
Position # 3 $. 78

A "Bid Gap" has appeared between the #1 and the # 2 positions. You can either pay $1.01 to lock in the #1 position, or bid $.80 for the # 2 slot. Given these alternatives it may make more sense to opt for the # 2 position. The slight decline in traffic from slipping to the #2 spot may be more than compensated by the improved ROI due to the lower cost per click.

If you want to play hardball with your competitors by driving their cost per clicks higher, while locking in good positioning for your ads at a lower cost, you can manipulate the 'Auto Bidding" tools to your advantage.

Example:

Position # 1 $1.00
Position # 2 $. 79
Position # 3 $. 78

In this example, if you used any of the "AutoBid" features offered by many of the Search Engines and set your maximum bid to $.99 ($.01 less than your competitor in the #1 position), the system would put you in the # 2 position at $.80 ($.01 more than the next highest bid), while your competitor would still have to pay $1.00 for the # 1 slot (since the system would consider your $.99 maximum bid to be the next highest bid, and adjust your competitor's bid to be $.01 more). Software company Pay Per Click Management offers a "CompetitionBuster" feature specifically designed to take advantage of your competition's "Bid Gaps".

We don't necessarily endorse this approach, but the Pay Per Click Advertising game isn't for the faint of heart. You need to have a well thought out bidding strategy so you don't overpay for your clicks, while still getting the traffic volume you need to reach your goals.

The Pros And Cons Of "Bid Gaps" February 16, 2005

Stan Hauser is a leading expert on effective Pay Per Click Advertising strategies, and creator of http://www.pay-per-click-advertising-guide.com

best cleaning company Highland Park ..

In The News:

Smart home hacking fears overblown? Expert reveals real cybersecurity risks and simple protection tips to keep your connected devices safe from hackers.

MIT develops needle-free glucose monitor using light technology. Revolutionary device could replace painful finger pricks for diabetes management.

The ClickFix campaign disguises malware as legitimate Windows updates, using steganography to hide shellcode in PNG files and bypass security detection systems.

Researchers from Osaka Metropolitan University designed a 21-foot dome that combines aquaculture and hydroponics to create a self-sustaining urban food system.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

ChatGPT data breach exposes personal info of users through partner Mixpanel. OpenAI confirms names, emails compromised in security incident.

Android rolls out Emergency Live Video for 911 calls, letting dispatchers see real-time scenes during emergencies. Great for holiday travel safety.

Malicious Chrome and Edge extensions collected browsing history, keystrokes and personal data from millions of users before Google and Microsoft removed them.

Google's new Call Reason feature lets Android users mark calls as urgent before dialing, displaying an urgent label to recipients using Phone by Google app.

Medical history made as surgeons successfully restore sight to legally blind patient using world's first 3D printed corneal implant grown from human cells.

Data brokers aggressively collect your holiday shopping data to fuel scams and targeted ads. Learn how to delete your digital profile before 2025 starts.

Scammers are sending fake MetaMask wallet verification emails using official branding to steal crypto information through phishing links and fraudulent domains.

Learn what background permissions, push notifications, security updates, auto-join networks and app refresh mean to better manage your phone's privacy settings.

Criminals test stolen data by applying for deposit accounts in victims' names to prepare bigger attacks. Learn why banks won't share fraud details.

New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.

A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.

AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.

Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.

Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.

Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.

Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Effective Keyword Bidding Strategies

Pay-Per-Click Advertising