Maximum Bid - Managing CPC Bids from the Bottom Up

Maximum CPC bid refers to the most you, the advertiser, are willing to pay per click within your search engine marketing (Google AdWords, Yahoo! Search Marketing, etc.) accounts. In this tutorial you'll learn:

  • A more thorough definition of maximum Google CPC AdWords bidding.
  • The importance of maximum bid to your PPC efforts.
  • How to marginalize the importance of maximum bid by consistently identifying inexpensive clicks and raising your account, keyword, and query-related Quality Score.

so what is maximum bid, anyway?

Your maximum CPC bid can be assigned to an entire group of keywords or to an individual keyword.

It is the absolute most you are willing to pay for each click on that keyword or group of keywords.

the importance of your maximum cpc bids

Your maximum bids serve as your keyword-specific budget; they tell the search engines how much you are willing to pay for a click from a given keyword.

Additionally, these bids help determine where your ad is placed. Ad position is determined based on two factors:

  • Maximum Bid
  • Quality Score

Thus, maximum CPC lets you determine how much you'll pay for an ad, and where that ad will be positioned; two very important aspects of pay-per click marketing and AdWords bid management.

Bid Management Software from WordStream can help you set Maximum CPC bids.

a different kind of bid management

While managing maximum CPC bids using Bid Management Tools is  important, there's a better means of manipulating the two main factors involved with maximum bid manipulation:

  • Ad Cost - You can reduce the amount you pay for an ad by raising your Quality Score and identifying inexpensive, long-tail keywords.
  • Ad Position - Ad placement is affected equally by Quality Score and maximum bid. Thus, raising Quality Score can help to increase your ad placement without having to increase your maximum bids.

So, creating lower costs and better ad position for your keywords can be accomplished by:

finding cheaper maximum bids

WordStream offers keyword suggestion tools and bidding software which automate the process of keyword discovery. These tools mine your AdWords account data to produce a robust keyword database, filled with keywords that are relevant to your business:

Maximum bids can be lowered by discovering additional, cheaper keywords to bid on.

These keywords have been discovered from past PPC campaigns. This provides you with a keyword database that is unique to your pay-per-click campaigns. Additionally, the software continually mines data about the keywords searched to discover your ads, ensuring that every time a user reaches your site via your advertismenent, that keyword is automatically added to your ever-growing (long tail) keyword database.

Lower Your Minimums Instead of Managing Your Maximums

Google used to have something called minimum bid (now known as first page bid). Basically, this number represents the least you can pay to have your ads appear in response to a query related to a given keyword (and now, the least you can pay to appear on the first page of results for a given keyword).

What WordStream does is offer Quality Score enhancement tools and AdWords bid tools, which allow you to appear on the first page of results for cheaper.

Quality Score takes into account a combination of:

  • Keyword relevance - How closely related your keywords are to one another.
  • Ad text relevance - How closely your ad text relates to the queries you're bidding on.
  • Landing page relevance - How similar the page you send visitors to is to their search and your ad text.
  • Click-through rate (CTR) - How often people click on your ads.
  • Other factors

By answering each of these challenges, you can increase your Quality Score and place your ads higher without raising your maximum bids.

An Alternative to Optimizing Max CPC Bids

WordStream has been built to automate not only the process of keyword discovery and PPC bid management, but also to provide tools which allow you to manage large keyword lists while sustaining high Quality Scores. The software does this by offering:

  • Keyword Grouping Tools - WordStream provides PPC management and workflow suggestions which allow you to quickly create semantically related keyword groupings.
  • Ad Text Creation Tools - Quickly and easily create numerous text ads for numerous groups; WordStream also offers textual suggestions of which keywords to include in your ad text for higher AdWords click through rate and Quality Score.
  • Landing Page Suggestions - Utilize the same ad text suggestions to author more targeted landing pages that will speak directly to your keywords and ad text (which not only improves Quality Score, but also helps with conversions).

To learn more about WordStream, or to start implementing these keyword research and Quality Score solutions today, you can: