The most effective form of AdWords  bid management isn't raising and lowering your maximum bid , but rather pushing down your minimum, or “first page” bid, which you do by strategically and effectively grouping and organizing your keywords.
Early in the process of learning AdWords , you may wonder, what is a minimum bid ? According to Google, “A minimum cost-per-click (CPC) bid is assigned to each keyword in your account based on its quality (or Quality Score ). The minimum bid is usually the lowest amount you can pay per click  in order for your keyword to show ads."
So by raising your Quality Score, you can lower your minimum bid and CPC .
Luckily, search engines like Google reward search marketers who group their keywords. When your ad groups  are closely related, your ads are more relevant to the keywords you're focusing your AdWords bidding  on, which in turn lowers your minimum first-page bid and CPC. Since you're getting more qualified clicks, you're making the search engines more money, and they reward you by increasing your Quality Score. What's the most effective way to organize your keywords so you can reap this benefit from search engines?
WordStream's keyword management  solution and bidding software  tools make achieving a lower minimum bid easy by organizing your keyword groups  in a hierarchical structure and integrating directly with Google AdWords . Organize keyword groups, ad groups, and text ads all from one interface in WordStream for easy AdWords bid management.
How Higher Quality Scores Help AdWords Bid Management
So we know that grouping keywords can help boost your Quality Score. What other factors improve your Quality Score?
- A high AdWords click-through rate  for your ads. This means that your text ads are correctly targeted for your site and are bringing qualified traffic.
- Ad text  must reflect the keywords you're bidding on.
- Ads should direct someone to a highly relevant, optimized landing page .
- Repeat, repeat, repeat! PPC  is never a “set it and forget it” scenario. You must constantly maintain your campaigns and refine your keyword list in order to stay at the top of the competition and reap the benefits of a low minimum bid in your PPC bid management  strategies.
Using Keyword Research as AdWords Bidding Research
You can't know which terms are best to bid on if you don't know which terms are drawing people to your site. You need real, personalized keyword data, not just an estimate of worldwide search data. You also can't know which terms are most cost-effective if you can't keep up with your snowballing list of keywords.
PPC and SEO  are iterative, labor-intensive, continuous processes. If you can't keep up in your pay per click advertising management  efforts by expanding and managing your keyword list into the thousands of valuable keywords you need (which no one can do on their own), you end up sacrificing business opportunities. Without a keyword management solution like WordStream, you inevitably cost your business the time and money you could gain by targeting your most qualified audience with the most expansive, highly qualified keyword list possible.
How does keyword research  impact AdWords bidding research? Because WordStream searches your site's log files for visitor keyword data, you're seeing the terms that are actually working to bring search traffic to your site. You know which terms are driving traffic, and you can use this data to help determine your AdWords account  bids.
How Keyword Taxonomy Impacts your AdWords Bidding Strategy
You may be pleasantly surprised to find that many of your most high-performing key terms are also the least expensive. By segmenting your keyword hierarchy into groups, you can approach AdWords management  in an organized way, creating ad groups from keyword groups, and whittling down from there.
Over time, you'll continue to prove the effectiveness of your campaigns with the search engines by showing AdWords that your terms are relevant. As a result, your costs will continue to go down as your Quality Score increases, and you'll secure better ad positions in Google's sponsored links . With WordStream, it's a win-win.
The Ultimate Bid Management Solution
You've seen how WordStream bid management software  can help with your AdWords bid management strategies. Now it's time to take the next step in improving your Internet marketing  campaign! From here, you can:
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