Bid management is a process of how you go about bidding on keywords on PPC marketing platforms. You can buy and use various different kinds of software. Or you can pay specialists to work with you and/or do it for you. Or you can learn about it, and do it yourself.
Some of the platforms, like Google, let you do it automatically. If you’re about to take your small business onto any of them, chances are you have a relatively small budget, so I’m guessing you will want to spend all of it on actually gaining customers.
PPC or pay-per-click marketing work like an auction. Tens, to hundreds, to thousands of business’s may all be bidding on similar keywords for which they wish to have their ad shown.
Lets take a look at bid management basics
‘Bid’ simply means what you’re willing to pay for every click your ad receives.
First thoughts maybe that the highest bidder wins and while this is somewhat correct, there is much more to it.
Because impressions (impressions are when your ad appears on the page) are free, and you only pay when someone actually clicks your ad, the PPC platforms are taking a gamble by showing ads that have not proved their worth.
Being the highest bidder however, WILL get your ad the chance to prove its worth.
Burning In Your Position
In one of my personal campaigns, I didn’t want to spend more than 70 cents per click, but my starting bid was $1 to get my desired spot straight away before optimising down to 70 cents and below.
It’s like turning up at a party making a whole lot of noise on your way to the dance floor so everyone is watching, and then mesmerising them with your best moves 🙂 but if you flop, they won’t hang around. Just like Google or Bing wont give you their prime spots for very long if your ads don’t perform.
In fact, they are ruthless. If they are showing your ad in a prime position and it’s not being clicked…
- The end user is not being serviced
- The PPC platform is not making money
How To Keep That Lucrative Position
If you have written effective ads for the keywords you’re bidding on, it will get clicked, which results in the ad racking up a CTR (click-through-rate). This is a % measurement of how popular the ad is, how many times is it being clicked compared to how many times it’s being shown (impressions).
Bid management strategy
Know how much you are willing to pay per click.
The platform will let you know roughly what it will cost to appear in the desired spots, i.e. the first 5-6. If it’s a keyword you want to bid for, and its in your budget, then you can bid. If it’s not, don’t worry. There are literally thousands more. The exception to this is when there is a keyword you really want rank for, because you know it will bring sales to your business. So you may want to push the boundaries a little to acquire it.
ROI is the desired end result so if you have to pay $10 a click, but make $15 back then you can take that to the bank any day.
Keep in mind, when testing you will have to burn through some money, however, from personal experience, the bigger test budget you have, the more money you will waste.
Follow these steps to minimize wasted ad spend
What should you do when ads don’t perform?
You must be ruthless in killing ads that dont work. Do not get emotionally involved with them. Just as a farmer would get rid of his bull if it didn’t perform. So must you.
Once you set your bid, and make your ad live, watch it like a hawk. If it costs you the amount you are prepared to spend on aquiring a lead or making a sale, without actually aquiring a lead or making a sale, then you will probably want to kill it. You may want to change the ad and retest. But I am more inclined to kill it, and move on to more keywords. 5% of your ads will be 95% of your results.
As you find those good ads, and they start getting a good CTR, you will find your CPC will start to lower by itself. This is the platform rewarding you. Drop your Maximum CPC down in line with the actual CPC.
When your ad starts getting results
If an ad is getting you results, even if it is a little bit more expensive than your ideal, run with it because you can bring the cost down by optimising your ad and tweaking your offer slightly.
When it’s performing, slice 5 cents off the CPC. Meaning – set your maximum bid 5 cents below the actual CPC, and if it still performs, keep slicing off 5 cents. if it stops performing, raise your maximum bid again.
Is Facebook the same as the other platforms?
Facebook PPC is slightly different. I tested 2 different strategies and found both gave favourable results. Facebook will also tell you how much you should bid, so my first strategy was to bid what they asked and quite often, the actual CPC was no-where near that figure, sometimes less than half.
My second strategy was only to bid a fraction of the suggested bid, around 30%. Then ran it for a few days to look at the performance. Then up the bid to the suggested bid and after a few days, compare results.
The good thing for you is that most people using ppc marketing, are not very good and believe they just need to throw money at it. This strategy soon blows their budget
In the Internet Business Academy, you will learn how to master PPC marketing and keep your sales funnel jam packed with eager buyers. You also have access to a team of advertising experts.
What ya waiting for? See ya there 😉
Lots of love