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Now USD 14 is much too high and I can never reach pares with that CPC.
We know that Max. bid x CTR x "AW-mystery-factor" = ranknumber (the higher ranknumber the higher position)
So I can reduce Max. bid at a certain point. Question is when and how much?
- When: as soon as my ad reaches the position I wanted
- How much: maybe in 20% steps watching the CTR carefully and prevend it from dropping
- Intervalls: maybe all 4 hours
What would be your ideas? Thank you so much.
There are two you have to know before trying such a stratedgy.
Do you have an ad with an exceptional CTR rate that you feel will do well for this KW? If you don't, then you first need to make some ads for similiar KWs or use exact match for that keyword which will gather enough impression to sort out the good from the bad ads. This is not a time to experiment with new ads - you need something thats already proved itself.
Secondly, you need to know how much you are willing to lose in the short run to gain the long term position. As G reporting stats are a few hours behind, adjusting an ad right as the stats look favorable doesn't mean that in real time your ad actually has that position.
Depending on the amount you're willing to lose, you can raise your daily budget to the amount your willing to lose if its not a lot, or the amount your willing to lose divided by number of days you estimate it will take to gain that position. (i.e. if the number is $5000, setting a daily budget for that campiagn to $1000 and letting the ad run for 5 days before resetting your daily budget) would work.
The other factor to keep in mind is that when you lower your max CPC, your bid rank will fall. If the CTR is good compared to the other ads, your position may not fall much, but its possible that it will fall several positions.
This stratedgy can work, just make sure its well thought out, and you can afford the loss in case the stratedgy doesn't work as much as you'd like.
Do you have an ad with an exceptional CTR rate that you feel will do well for this KW? If you don't, then you first need to make some ads for similiar KWs or use exact match for that keyword which will gather enough impression to sort out the good from the bad ads.
is something I considered but the problem is that kw in this special area are either: high traffic high bid or almost no traffic lower bid. I am using a creative that had a respectable CTR but on a small statistical basis (see first problem)
thank you again for the great and analytical answer.
If you are currently experimenting with this KW to determine the best ads, and you think your CTR is less than the average CTR for everyone bidding on that KW because of your low bids, do the following:
Before changing your max bid to a high amount, delete the kw every single place in your account. This will reset your KW ctr. When you readd the kw with your new high max CPC, you will be assigned the average CTR of everyone else bidding on that term. That will help level the playing field and hopefully you're new high max CPC will get you a higher position.
If you're trying to bid $14 for [widget colours], then you would not have to delete "widget colours" or [pink widget colours] as they are all different keywords.