Start with the Right Bidding Strategy
When managing your Google Adwords campaigns, a good PPC Manager will match the bidding strategy to the client’s goals and budget.
What is the best bidding strategy for you?
Many times, if your budget can withstand the initial cost, an assertive initial bidding strategy can pay off in the end.
As you have seen in many of our posts, we rarely recommend that a client bid for positions 1 or 2. There is a high premium on these positions and the traffic quality is usually worse that the remaining positions on the page. However, without a doubt, the CTR (Click Through Rate) is the highest in these positions – which is good for your Google AdWords Quality Score.
Google takes into consideration many things in determining your Quality Score. Things have changed in the last few weeks with the Quality Score, but one thing remains the same – Google still uses the Quality Score to determine your position and your cost. With that in mind, a higher CTR improves your Quality Score and therefore improves the performance while decreasing the cost of your campaign.
With an assertive bidding strategy out of the gate, aiming for positions 1-2, you will increase your CTR. Once you have established a strong CTR, you can bring the bids down, landing you in a higher position at a lower cost than if you had come in softly.
This strategy isn’t for everyone and needs to be carefully monitored. At position 1-2, the cost per conversion will be higher for the period of time you are bidding assertively. But, if you can think of it as an investment in the campaign, it will likely pay off in the long run.