So you have your keywords and your adverts but how much should you pay for a click?
The Google traffic estimator can help you identify potential prices for positions you wish to attain. In general positions 2-5 are the ones to go for. Position 1 often gets clicked on whoever is there as it is the top thing on the screen and so generates a great click through rate but not necessarily the best click quality.
If the camapign is set up perfectly with conversion tracking and analytics then bidding isn’t too difficult.
Start with a blanket bid across all keywords and ad groups unless you want to weight more importance to certain products or services. Remember, in targeted ad groups all keywords should have equal value to begin with as they target the same theme.
Once the account is up and running adjust the bids according to conversions (no or expensive conversions = lower the bids on the keywords, lots of conversions, low cost per conversion = up the bids). Look into analytics – low bounce rate, high time on site, high number of pages vistited – up the bids. If it is the opposite – high bounce rate, not much time on site, low pages per visit – lower the bids.
It is common sense in the main and the statistics are there. You want to generate the best traffic to your site so get better positions on the better performing keywords. Remember not to use a hunch, or I know best approach – use the data in front of you. The one thing to remember with bid changes is always make them for a reason and then track what influence the changes have made – give it a week at least for the changes to show result. Don’t rush into changes on a daily basis or you won’t have given the camapign the time to show the results.