Are You Getting 'Bumped' On Google Adwords?

Aus Salespoint

Right after consulting with numerous people I've by no means noticed so a lot confusion with regards to how bids are determined by Google.

Some folks believe that you pay what your Max Bid is and other people think that you pay 1 penny far more than the

individual below pays.

Neither of these are really correct. It is rather a combination of those. This confusion has lead several to pay way to much for there bid position simply because they do not see the necessity in monitoring bids.

Let me give you an example:

Bidder 1: Max Bid is .55 but pays .51 per click.

Bidder 2: Max Bid is .50 but pays .21 per click.

Bidder 3: Max Bid is .20 but pays .06 per click.

Bidder four: Max Bid is .05 but pays .02 per click.

Bidder 5: Max Bid is .01 and pays .01 per click.

Hopefully you are seeing a pattern here. The truth is that you really spend only 1 penny far more than the person beneath you's Maximum Bid.

But then why is it essential to monitor bids you could ask if Google tends to make you only spend 1 cent more than the Max Bid of the individual below you?

In the senario above the finest value position is becoming in #2 due to the fact #2 is paying 30 cents less per click than bidder #1. The bid gap distinction in between position #two and #three is only 15 cents.

So you can have practically as numerous clicks as position #1 for more than half the price. If you have 1,000 clicks position #1 is via paying $510 and position #two is paying only $210. You are saving over half which means elevated profit margins for your company.

But right here a bidder can use a dirty trick to raise how much you are paying per bid with a tiny identified technique which I call Bumping!

Let's say you are Bidder two and you get employed to paying 21 cents per click.

If Bidder three is savvy (and a lot more and much more bidders are) he could Bump up what you are paying.

He/She can improve their Max Bid to 49 cents, while nonetheless only paying 6 cents per click. All of the sudden you are paying over double per click than what you had been paying ahead of.

With Google being a lot more and a lot more competitive this is happening a lot more often and is utilised to result in you to over spend for your clicks, put you out of organization or drop your position, so that they can take over position #2 for a lower price than what you are paying.

To avoid having this happen to you, you actually require to monitor all of your bids to make confident that no a single is "BUMPING" you. Nevertheless, since absolutely everyone is constantly changing their bid rates more than the numerous keywords you have, it is nearly impossible to keep up with monitoring this with no a precise computer software...