Please sign in to post in this forum.

This Question is Possibly Answered

1 "correct" answer available (5 pts) 3 "helpful" answers available (4 pts)
1 2 Previous Next
Post a new topic
7 Replies Last post: Dec 14, 2007 11:29 PM by Lighthouse24

Google PPC Question

Jul 17, 2008 10:05 AM

Click to view amspcs's profile Mogul amspcs 516 posts since
Oct 18, 2007
I am stumpted about how to compute 'bid' amounts for Google PPC. Have tried multiple strategies, nothing seems to work.

I assume the trick is to bid high enough to get your ad reasonably placed at the top of the heap, but not too high as to ridiculously overpay. The problem is: How does one go about researching this? I can tell you the trial-and-error approach isn't the answer because what seems to work great on Tuesday completely flops on Wednesday---no rhyme or reason.

I believe Yahoo has (or had) a system in which no matter how high one might bid, the actual price charged for a click can never be more than a penny or so more than the next highest active bid for that key word.
#1: Is this true? and if so, #2 does Google PPC also have such a policy?

If anybody has had success on Google PPC, any insight into how to best determine the appropriate amount(s) to bid would be appreciated. Thanks.

AMSPCS
Report as inappropriate
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
1. Re: Google PPC Question Jul 17, 2008 2:23 PM
in response to: amspcs
The google algorithim that controls this process more than likely changes daily based on what the 'hot' bids are on that day.
Click to view amspcs's profile Mogul amspcs 516 posts since
Oct 18, 2007
2. Re: Google PPC Question Jul 17, 2008 11:40 PM
in response to: DomainDiva
I understand the daily change part. My question still stands: How does one best determine appropriate amount to bid?
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
3. Re: Google PPC Question Jul 18, 2008 12:57 PM
in response to: amspcs
You can talk to a person in sales, thats the only way I know of being able to be consistently on top. The salespeople will customize an account for you..of course this is all based upon how much money you can afford to pay. The more money you pay the higher your ranking.
Click to view puzzleman's profile Mogul puzzleman 293 posts since
Oct 11, 2007
4. Re: Google PPC Question Jul 18, 2008 3:31 PM
in response to: amspcs
I used to use Google PPC and found that it is hard to determine where to be. I found through experience that for me, the third spot did just as well as the first position. So I would bid that way.

I didn't fret about it working one day and not the next. Some people I knew would fret about it from hour to hour. I took the bigger view and looked at weeks and months of data to see trends. I did see trends that would indicate some hours were better than others as far as return on clicks, I left my ads up all the time as I would get orders at all hours of the day.

Jim
Click to view amspcs's profile Mogul amspcs 516 posts since
Oct 18, 2007
5. Re: Google PPC Question Jul 18, 2008 3:43 PM
in response to: puzzleman
Hi Jim. Remember me, we had a few phone conversations many months ago. Anyway, I hear you, I don't fret day to day or hour by hour. What I DO see is a consistent pattern of an initial spike of positive activity at the very beginning of a new campaign, then it just dies, completely and permanently. I turn it off to 'rest' a few days, reactivate it, and see the same thing again...initial spike, then total death. Almost as if they want to give you some positive reinforcement to dig deeper before reality sets in. Threre HAS to be a better way. Darned if I can figure out what it is.

Question: How DO you figure out how much to bid? What's too high and what's too low? Is it purely guesswork trial and error? Or is there some source where one can get an idea what competitive bids are?

BG
Click to view puzzleman's profile Mogul puzzleman 293 posts since
Oct 11, 2007
6. Re: Google PPC Question Jul 18, 2008 3:56 PM
in response to: amspcs
Hello, I do remember you. I set my bid amounts based on what others were bidding so that I usually wound up in the 2 or 3 spot. I set my weekly amounts based on what I felt I could afford without making a sale, knowing that some where going to turn into sales. Overall, I did not have any scientific way of doing it just trying not to go broke and gutting it out.

Concerning that you spike initially and then go down and then it repeats when you turn it back on again.
Are the people coming through the same people? Are they going because it is new each time? Are you making sales from the leads?

Maybe with your product that is the way to do it. Turn it on for a while, then turn it off and then back on again. Don't fight it, just go with the flow. could be it is just the nature of your ad and product.

Jim
Click to view amspcs's profile Mogul amspcs 516 posts since
Oct 18, 2007
7. Re: Google PPC Question Jul 18, 2008 4:08 PM
in response to: puzzleman
Re: "I set my bid amounts based on what others were bidding". HOW do you find out what others are bidding?

Re: '+Are the people coming through the same people? "+ I have no idea who the clickers are. How does one tell?

I suspect there ar lots of tools out there I am missing out on. The purpose of this inquiry is to find out what the heck they are.

To be honest, I just suspect the initial spike comes from nosy people who just want to click on competitive ads, either for curiosity or maliciousness Google is supposed to have a policy on malicious clickers, but I'm not sure about that, nor do I see any incentive for Google.

BG
Click to view puzzleman's profile Mogul puzzleman 293 posts since
Oct 11, 2007
8. Re: Google PPC Question Jul 18, 2008 5:02 PM
in response to: amspcs
How I figured out what others were bidding was to put in a bid and it would tell me where my place would normally be. Then on another window, I would search the search word and find out who was coming above and below me. Then I would go back and put in a different number and repeat the process. I know it takes time but that's how I did it.

I would track when the people are coming through and then go to my web stats and look at that time frame to see where the most people were coming from.

I'm sure that my methods are crude but for me they worked.

Jim
Click to view isc_inc's profile Start-up isc_inc 2 posts since
Aug 6, 2008
9. Re: Google PPC Question Aug 6, 2008 5:46 PM
in response to: amspcs
First off, you need to figure out how much you can spend.

What is your websites conversion ratio? This is the amount of visitors who buy compared to those that visit. If 100 people visit and 10 buy then your conversion ratio is 1 in 10.

Next you'll need to know your average net dollar amount per sale. In other words, how much per sale you stick in your pocket. Let's say that is $10.

So, if 10 people from google visit your site and you make 1 sale yielding a $10 profit you could afford to pay google $1 per click and break even.

Now, business is not about breaking even so with the above scenario I would start in the 90 cents per click range. You would be paying out $9 for every $10 you make which would cover your cost.

At that point you will need to start tweaking on your google ppc ads for best performance. Google ppc is all about clicks. They would rather run your ad in the #1 spot for 25 cents a click if it is getting 5 clicks (1.25 in profit) versus some guys ad that is paying $1 a click and only getting clicked on once ($1 profit).

The key to google adwords success is ad perfomance. If you have 25 keywords, make 25 ads targeted to every single keyword. Stay on top of your ads at least daily. Eventually you will thin out your keyword list to remove the non performing keyphrases.

On a more advanced level google ppc also has a conversion tracking tool. The tool essentially will report which keyphrases are actually converting into sales and how much money it is costing you to make those sales.

Stick with google adwords, it is a lot to initially digest but in the long haul is the best bang for your advertising dollar.
Click to view websolutions's profile Mogul websolutions 191 posts since
Feb 4, 2008
10. Re: Google PPC Question Aug 7, 2008 7:40 PM
in response to: isc_inc
I agree with ISC_INC, I would start low and optimize. I would reasearch the keywords/phrases day and night, and talk to people in the industry to get some idea on what to expect. I am sure there are forums specifically for your niche to obtain information from.

Good Luck!
http://www.livedomainsearch.com
Click to view Glyndower's profile Professional Glyndower 8 posts since
Aug 11, 2008
11. Re: Google PPC Question Aug 11, 2008 4:55 PM
in response to: websolutions
Not to take anything away from the PPC services, they do provide an instant gratification factor. There has been some fantastic advice offered here also.

But it is my experience that a well thought out and built from the ground up plan to market and optimize your website for the search engines brings a much higher quaility of User. One that is more interested in actually purchasing your products or services.

For my business dollar, it is a much wiser expendture than fishing for the PPC audience of Users.
Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008
12. Re: Google PPC Question Aug 12, 2008 3:58 AM
in response to: amspcs
Google PPC might now always increase your sales, but it can increase your search engine rankings.

One of the things that PPC offers is to be listed in the Google Content Network.

Listing your site in the Google Content Network will increase links to your website, which the more links to your site the more important search engines think your site is.

Also, do not expect a high rate of turnover in sales with any PPC market. It does increase awareness, and traffic, but unless you have one of the best websites in your relevant industry, you will not show a great ROI.

Great Websites First, Marketing, Traffic Generation Second.

Michael Stratton, Integrity Technology Specialists
Click to view Glyndower's profile Professional Glyndower 8 posts since
Aug 11, 2008
13. Re: Google PPC Question Aug 12, 2008 8:57 AM
in response to: intechspecial
There seems to be a common belief among many that using PPC with Google will benefit your site in Natural Position ranking. I do not believe this to be the case. Yes, PPC does get you in the Content Network. BUT in order for that in bound link to be seen by GoogleBot it would have to be present when GoogleBot spiders your website. (the content network ads are served dynamically, in other words the ads change everytime a User views the site.) Although this is possible, it is not probable.

Static, text based, keyword relevant, in bound links will always trump any benefit based on in bound links from the Content Network.

Googel also adamantly denies that PPC (with them) has any bearing at all on natural ranking.
Click to view your_web_guy's profile Mogul your_web_guy 68 posts since
Aug 4, 2008
14. Re: Google PPC Question Aug 12, 2008 9:15 AM
in response to: Glyndower
any links generated by flash or javascript usually will not contribute to your page rank nor will it effect your serps. Googlebot cant see flash and cannot read the output of javascript.

the good news is that with adwords you do get out of the sandbox with google quicker, but it doesnt change your ranking per se... it just gets you in the running sooner.
1 2 Previous Next