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Quick Adwords Tip #1

01. Mar 2007 | 4 Comments

With the new quality score updates rolled out I can appreciate that now some campaigns are becoming less profitable, so I thought I’d post a few tips now & again to help you guys keep on top of things. So here’s #1.

If you’re using exact matching on a keyword & you’re averaging a 5% CTR constantly then you can lower your bid by 1c everyday & still keep your position. So if you’re bidding $0.30 to start after 15 days you will be bidding $0.15 & still keep the position.

Advantages of this is that you can half your running costs on some keywords & make them twice as profitable :)

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4 Comments on "Quick Adwords Tip #1"

Garrett 02. Mar 2007, 7:19 am

Stuart,

Doesn’t your position retention depend upon your competition? So, let’s say you’re in slot #3 with your $.30 bid and 5% CTR. Your competitor is in slot #4 with a bid of $.25 and 4% CTR. Aren’t you going to lose your slot to your competition once your bid gets down to about $.19 (and Google will make more $ by showing the competitor’s ad)?…ceteris paribus.

Stuart 02. Mar 2007, 7:40 am

Interesting point Garrett, chances are if you’re running with a 5% CTR your competitors are not going to be hitting a consistent 4% CTR as well. You can always bid back up if when moving your bid down by $0.01 you lose your position.

As long as you don’t change the display URL then you don’t lose your history. So you can keep lowering until you reach that threshold…

Garrett 02. Mar 2007, 9:03 am

I see. Do you make sure your ads exceed a minimum impression level (to get history) before you start monkeying w/ the bids?…assuming it’s a new domain.

Chris 04. Mar 2007, 6:14 pm

I’d love to see more Adwords and Adsense tips. I’ve a feeling that you’re holding out on us. :)

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