Adwords has a new feature called the keyword bid ideas that provides keyword bidding recommendations based on your keyword performance in the past. The keyword bidding feature helps advertisers either increase the number of clicks (raise bids) or reduce the costs (lower bids) of keywords.

How it works

Adwords uses the bid simulator to generate bid ideas. It looks at the keyword, its quality score, competition, past week performance and ICC (Incremental cost per click) to determine the bidding opportunities.

Advantages

* The information will help advertisers make better decisions in terms of identifying keywords which generate more revenue or cost more.
* The bidding system uses minimum and maximum thresholds to provide recommendations. This allows advertisers to make changes and not be affected by drastic changes to the performance of the account. (click here for more details).

Ex. When providing bids to increase clicks, Adwords won’t propose a bid unless the change allows for total increase in keywords by 8%.

Similarly, when providing bids to decrease clicks, Adwords won’t propose a bid unless the change allows for total decrease in cost by 8%.

Disadvantages

* The Adwords system uses only one week of historical data (i.e. previous week) to provide recommendations which certainly will not be the most accurate. The more data sample you, the better the recommendations will be. At least 2 to 3 weeks data sample would be most desirable to provide recommendations.
* Recommendations are based on clicks, costs, ICC and threshold limits only. This means Adwords doesn’t take in to consideration the advertisers’ value per click and ROI. So use of common sense and discretion is highly recommended.

How to use it

One way this feature can be used effectively is to determine what actions you can take with the keywords that cost more but don’t have conversions. Depending upon the number of keywords you have, you can look at all or the ones with the most costs. Once you have determined the keywords, check to see if Adwords has provided bid recommendations for those keywords. Use those recommendations to make bid changes and analyze the outcome to gauge the tool’s effectiveness in terms of your campaign goals.

Conclusion

Something is better than nothing. The recommendations are step in the right direction and Google is considering using ROI to determine bid changes. This is something we can expect in the future. Use the tool with discretion and test it to identify the most effective way of using it. Pitstop Media is a top Internet marketing company located in Vancouve Please contact us at http://www.pitstopmedia.com if you need assistance with any of your projects.

keyword bids

Your Opportunities tab may show ideas for changing your keyword cost-per-click (CPC) bids. Ideas are for increased bids (to help capture more clicks) and decreased bids (to help lower your costs). While we don’t know enough about your advertising goals to make specific bid recommendations, we try to identify which of your keywords seem to be good candidates for bid changes. Use the ideas to help inform your bidding decisions.
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PPC stands for Pay-Per-Click – a popular advertising technique on the Internet. Found on websites, advertising networks, and especially on search engines, PPC advertising involves sponsored links that are typically in the form of text ads. These are usually placed close to search results, where an advertiser pays a particular amount to visitors who click on these links or banners and land on the advertiser’s web page. In essence, PPC advertising is all about bidding for the top or leading position on search engine results and listings. Advertisers do this by buying or bidding on keyword phrases that are relevant to their products or services – the higher the bid, the higher the spot on the search results, the more the people will find the ad (and click on it) to go to their websites (this is why some people call it “keyword auctioning”). Advertisers would then pay the bidding price every time a visitor clicks through the website. PPC advertising is also known under the following names/variations: • Pay per placement • Pay per performance • Pay per ranking • Pay per position • Cost per click (CPC) PPC advertising is usually done with the following standard procedures: 1. Setting up an account and/or deposit funds. 2. Creating a keyword list. 3. Choosing (and setting up) an account with a PPC search engine. 4. Bidding on the ad placement, including the search result words or phrases. 5. Writing out an ad copy. 6. Setting up the ‘landing pages’ for your ads. 7. Placing the advertisement in the search engine. Order “The Expert Guide To PPC Marketing” today and earn that six figure income you always wanted.

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Understanding Google AdWords Keywords

The concept of Google AdWords might seem fairly simple initially; by bidding on a selection of Google AdWords Keywords, waiting for the ads to run you then receiving masses of visits making you lots of money. It certainly sounds great, right?

The fact is Google AdWords can be lucrative and can be used for selling your own products or services; you can also use the program to promote an affiliate product. Because the Google AdWords program has a reputation for being lucrative and successful you should certainly give it your consideration however there are also tales of individuals losing sums of money through its use as well. Reading this article will help avoid any losses by making a good start.

The vital aspect of using this program is to select the proper Google AdWords Keywords to bid on; if you pay for clicks that fail to convert into sales then you might find yourself in a little financial trouble. The most cost effective method is to locate profitable Google AdWords Keywords and discard the surplus items that fail to perform.

Some information suggests that you can make a fortune with a ‘set and forget’ system with Google AdWords, this is untrue; at least, not at first. Once you make your Google AdWords Keywords selection that you wish to bid on, you need to keep your eye on them for a couple of reasons. Firstly, if Google detects that your ad fails to receive sufficient clicks in comparison to the exposure it receives, they will cease running that ad. The second reason, mentioned briefly above, is that if you are bidding on Google AdWords keywords that are generating plenty of clicks that do not convert well, this must be rectified.

Prior to commencing your campaign you should create landing pages on your site for each keyword or group of related keywords. Each page should also display tracking statistics so that you can identify which keywords are driving people to your site and resulting in sales, this would also help you to determine which Google AdWords keywords you need to look at more closely.

Ads that fail to convert to sales are not always an indication that there are problems with the keyword; the ad itself could be the real problem. It may be there is a hitch with the copywriting on your landing page or the layout of the page; alternatively you may be losing sales because there is another link on the page that visitors are clicking instead of the buy link.

Certainly it can be tricky to know exactly what Google AdWords keywords will be most profitable against those of probably no value in terms of return. A sensible suggestion to guard against losing money is to properly consider the use of software to automate this process and focus on the profitable keywords, this way with a little financial outlay you will considerably reduce your chances of losing money with Google AdWords.

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How to Use FREE Keyword Ideas in the Opportunities Tab in AdWords

Goals

The Opportunities tab provides keyword and bid alternation suggestions for your AdWords account. These suggestions can be viewed with a few different goals in mind.

You can view suggestions that will help increase the traffic within your account, or help balance cost and traffic, or help maintain or decrease cost. You can view the suggestions geared toward each goal:

Of course, the “Increase traffic” goal will almost always contain the most suggestions. The more keywords you add to your account, the more clicks you’ll accrue, and the more money Google will make. That’s not to say Google is evil or trying to be sly or dishonest here — that’s just how it is.

However, adding relevant keywords to your ad groups will increase quality clicks to your website and should generate more sales. Everyone wins.

The other two goal objectives, “Balance cost and traffic” and “Maintain or decrease cost” usually provide few suggestions for account optimizations — and some of these suggestions aren’t high quality.

To sum up on the goals objectives in the Opportunities tab: you can view this section of your AdWords account as a way to find new keywords, with maybe a few keyword bid suggestions that you can usually disregard.

Keyword Suggestions

This section of the Opportunities tab is most useful as an alternative source of keyword research. Where do these keyword suggestions actually come from? According to Google, their automated tools generate keyword suggestions. Google takes search data and compares it to themes in your existing keyword lists. Google analyzes the search data related to your campaigns, then tries to find new keywords that are relevant to your ads which don’t exist in your account.

Keyword suggestions are provided at the ad group level of your account. As seen here, there are 57 keyword ideas for my Engraved Name Badges ad group; 100 keyword ideas for my ID Card ad group; and 64 keyword ideas in my Belt Clips ad group:

As with any suggestion (in general), take these ideas with a grain of salt. Review all of the suggestions carefully. When you click on one of your ad group names, you can review all of the keyword ideas for that ad group.

Assessing Keyword Ideas

As you review your keyword suggestions, you have a few options for gauging how relevant a keyword is for this particular ad group or your entire account. You have three ways to judge a keyword idea:

• Keyword is fine: You can check the box next to the keyword, hit Apply Now at the bottom of this screen, and the keyword will be added to this ad group.
   
• Keyword is irrelevant to this ad group: The keyword is relevant for your account, and perhaps would fit best in another ad group, but it isn’t a good choice for the ad group that Google has suggested. Selecting this option gives you the chance to load this particular keyword idea into a different ad group.
   
• Keyword is irrelevant to my account: If you select this option, the chosen keyword idea won’t be suggested again for this ad group or any other ad group in your account.

For each ad group, you must rate each keyword idea and then hit Apply Now on the bottom of the screen. If you have numerous keyword ideas in various ad groups, this task can be time consuming. However, you can find new relevant keywords for your ad groups, and if you take the time to tell Google which terms aren’t relevant for your account, Google will provide better suggestions in the future.

Also, the Opportunity tab shows you the estimated search volume and level of competition for each keyword, which is helpful. This can help you decide if a keyword is worth adding to your account. Perhaps the competition is too high or the search volume is too low.

If you haven’t looked at the keyword ideas within your Opportunities tab recently (or perhaps ever), check them out. Remember, however, you need to review each keyword suggestion carefully and make good decisions about which keywords will generate additional targeted, relevant traffic to your website.

Bonus Tip!

When you’re reviewing the keyword ideas within an ad group, it’s all or nothing. A note at bottom of the keyword ideas screen reads:

“All unselected ideas will be discarded when you apply or save any ideas above. Before you apply or save any ideas, make sure you’ve selected all the ones you like.”

So, if you open up an ad group to review the keyword suggestions, it’s best to review all of them (good or bad) — otherwise, all unchecked suggestions will be discarded. Read more on Search Engine Watch

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