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Minimum bid when no bidders

What bid to set if no competitors?

     
3:24 pm on Mar 24, 2006 (gmt 0)

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I am about to launch a campaign with keywords that no-one is currently bidding for in AdWords. What happens if I set the minimum bid price to 5 cents? And what happens if I set the minimum bid price to 50 cents? How much will Google actually charge me initially for a click?
3:56 pm on Mar 24, 2006 (gmt 0)

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No one knows that answer. It will be trial and error for you - I recommend setting it on the higher end and seeing what position you obtain. If you come up #1 then reduce the max cpc. Keep reducing until your ad disappears and then bid back up the amount when your ad was last displayed.
4:17 pm on Mar 24, 2006 (gmt 0)

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If
1.- You really, really have no competitors, i.e. like bidding on your own site made up name.

and

2.- You're lucky.

Then, you can setup $0.01 bids and it should work.

4:19 pm on Mar 24, 2006 (gmt 0)

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If you're absolutely sure there's no single competitor, then ...


What happens if I set the minimum bid price to 5 cents?

Google will charge one or two cents.


And what happens if I set the minimum bid price to 50 cents?

Google will charge one or two cents.

(In order to check in other countries, use the gl=CountryCode trick on the query string)

4:41 pm on Mar 24, 2006 (gmt 0)

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If...You really, really have no competitors, i.e. like bidding on your own site made up name... and You're lucky...Then, you can setup $0.01 bids and it should work.

I wanted to jump in with some clarification, as this is not necessarily the case.

I really wish I could link to the Online resource provided by Google where questions/issues such as this are written about, but WebmasterWorld TOS prevents me from doing so.

Since I can't link to it, I'll excerpt from a longer post on this subject, from back in January. Bolding added.

A common AdWords misconception explained...

...The minimum bid, also known as the minimum CPC, is the least that one can pay to have an ad appear for a particular keyword in a particular account. It is very important to know, however, that one's minimum bid is entirely unrelated to how many other advertisers are using the same keyword. Instead, since August of 2005, the minimum bid has been quality based. To put it simply, the higher the Quality Score of a keyword, the lower one's minimum bid will be for that keyword.

So, very low minimum bids are earned by creating highly relevant ad text and keywords that get outstanding Quality Scores. And only the most relevant keyword and ad text combinations will earn a minimum bid of $0.01 (or its equivalent in other currencies).

It's worth noting that every keyword has a minimum bid that is unique to how successfully that word has been used in an advertiser's particular account. So the minimum bid for the keyword 'Kansas City BBQ sauce' will be different in your account than in your next door neighbor's account, who happens to be using the same keyword.

How can you lower your minimum bid? The short answer is to improve your Quality Score by optimizing your ads.

The original post had several links to more info, which I have not reproduced here.

AWA

5:42 pm on Mar 24, 2006 (gmt 0)

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Thanks to all responders. Your information is very helpful.
6:02 pm on Mar 24, 2006 (gmt 0)

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It has nothing to do with competitors. It is based on your adgroup and keyword quality. I have some that started at .1, .05, and .01. Once they all did well, the min bid went down to .01. It will go down as the ad does well. If there is no one below you, you will pay roughly whatever the min bid in your account is. Consider this, there may be no ads on it because it is hard to get a low min bid. I haven't run into many of these those. I have however run into keywords that make just won't go into the blue and makes it difficult to get a good enough quality to hit .01. That is rare though.