Increase click price or not?

What would you do?

[zeus661]

I have a campaign set up for a company in CJ. So far I am making a profit. My cost per click is set very low. Is it reasonable to say that if I increase the bid amount i'll pay per click that I will probably increase my sales also?

Anyone have any experience here? What are your thoughts and what would you do?

Currently my bid is 5 cents. I was thinking of doubling it.

[Robsp]

Zeus,

What is the average position of your ad and how much can you afford to pay to still make a profit?

If your average position is higher than 5 raising your bid will increase traffic (not neccesarily conversions). The margin on your product or service determines how high you can go and still make a profit.

[wackybrit]

My answer to your primary question is 'not necessarily'. Only you have the information which can give you that answer. For example, if your ad is the only one for your targeted keywords, increasing your bid amount is not going to help a greal deal (unless you can wangle a colored bar ad out of it). If you're averaging position 4, say, then increasing your bid amount should improve your position which <em>may</em> improve your chances. This is still more of an art than a science though, and quite dependent on your ad and the niche IMHO.

[Fischerle]

Trial and error is unfortunately the only way to find out the answers to a lot of questions about Adwords, and what works for one ad or campaign probably won't work for another so it's hard to draw conclusions from successes or failures. I guess that's part of the fun, too.

[zeus661]

Average position is 5.8 over 8 ads in the campaign. So actually I guess there is no need.

[AdWordsAdvisor]

I just made it to the boards for the first time today, and Fischerle kind of beat me to my answer. My answer was going to be:

"Give it a try, and monitor your results as carefully as you are equipped to do."

The AdWords program has few hard and fast rules that apply to every advertiser/industry/site.

So experimenting, and then monitoring, is a really valuable tool to help find out what works for you.

Gotta run again now - back in an hour to see what's up. ;)

AWA