AdWords Tips

Guide to Google AdWords Bidding & Budget Settings

By Tom Demers December 19, 2011 Posted In: AdWords Tips Comments: 2

This is the latest in a series of posts on Google AdWords campaign settings. In the first installment, we talked about how to name and organize your Google AdWords campaigns and in the second post we focused on locations and languages settings within the AdWords settings tab. The topic for this post is bidding and budget settings for AdWords campaigns.

Google AdWords Bidding Settings

AdWords' bidding options offer advertisers a variety of ways to manage bids:

Focus on Clicks

Focus on Clicks

This bidding option allows you to manage your bids at the cost per click (CPC) level. When focusing on clocks you can make use of a few different options.

  • Manually setting bids for clicks means you can control your bids at the keyword level and set the maximum cost you’re willing to pay for clicks.
  • You can also cede control of this setting to AdWords and allow them to “maximize clicks within your target budget” but that will let the AdWords platform simply bid to generate as many clicks as possible to your budget without any actual intelligence about your budget.
  • Enhanced CPC takes into account proprietary data that only Google has access to, such as the user’s geographic location, Web browser, network partners, and past performance to create an enhanced CPC. You can use the enhanced CPC in conjunction with your own bid management tools and processes.

Conversion Optimizer

Focus on Conversions

Here you can set a maximum cost per acquisition that you’re willing to pay per conversion. You can use Google’s recommendation, which will target your historical average CPA, or you can create your own target CPA. Conversion optimizer does turn control of your campaign’s bids over to Google, but in many instances it might be more effective – from a time and efficiency perspective as well as a CPA perspective – for managing bids in your campaign.

Focus on Impressions

Focus on Impressions

This bidding option moves away from paying for clicks and conversions and focuses your spend on impressions. This can be a bit risky because you’re not guaranteed either conversions or visitors to your site with this option, but if used properly and monitored closely you can sometimes get traffic more cheaply by bidding by CPM, particularly on the content network.

Budget & Delivery Method

These options are fairly straightforward – budgets should be set per campaign based on your overall account strategy (which we covered in the first post in this series). Delivery has to do with whether you serve your ads as standard or accelerated. Standard delivery means your ads will show throughout the day. Accelerated ad delivery means Google will show your ads as quickly as possible. This method can sometimes better expose opportunities to be increasing budget and getting more qualified traffic from AdWords.

Location targeting AdWords




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Comments

Thursday December 22, 2011

Warren Lowe (not verified) Said:

Great post, thanks for the help. Can you suggest what may be happening when I start an ad with bids around 20p and then they end up needing at least £1.50 to get onto page 1.

Sunday January 01, 2012

Tom Demers (not verified) Said:

Hi Warren,

If I'm understanding you correctly that's pretty common - basically what's happening is you're telling Google "I can pay .20 for this traffic" but several of your competitors are willing to pay more for the same term, so in order to actually show for that keyword you'll have to bid significantly more than you've designated. I actually wrote a post with some ideas of what to do when you're running into costs per click for a given keyword or keywords that are too high that you might find helpful:

 

http://www.wordstream.com/blog/ws/2011/07/18/adwords-cost-per-click-too-high

 

Good luck!

 

Tom

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