QS = Great.should I lower my bids?

I'm spending tons, just realized my QS is great all around

[Hubie]

Should I be lowering my Max CPC closer to the Min CPC? All of my expensive keywords are GREAT quality score.

I know each situation is different. BUT, I'm asking in a general sense here...

If I'm paying $0.20 per click, with a GREAT qs, and the Minimum bid is $0.04. Would you guys recommend lowering the my bid to .04? leave it at .20? somewhere in between?

Sorry, I havent touched my CPC in months, before there was a QS column. Just wondering how important it really is...

[beesticles]

Your bids should be set at the level that delivers you the ROI you want from the campaign. Whether your QS is great, good or poor, ROI is the overriding factor.

[Hubie]

I understand this basic rule of PPC.

I am at the point where my ROI is good. I dont want to potentially HURT my campaigns by cheaping myself on my max CPC.

On the other hand, I just found out how to add the QS column and I'm great all over. The min bids are very low compared to my bids (min bids all less than .05. My bids are closer to a dime or quarter). My position currently is about 2.5-5 all around.

My question is...what would you do in this situation? Lower your bids to the minimum b/c of your Great QS, but risk losing tons of clicks/conversions/ROI to penny pinch? When do you take that leap when you have a good thing going?

[beesticles]

There's a tradeoff between volume and ROI, and that tradeoff is profit. I presume you want to maximise your profit. Simplistically, if you lower your bids, then your volume will decrease, but your ROI will increase. If you raise your bids, your volume will increase, but your ROI will decrease. Somewhere in between there's a sweetspot that balances volume and ROI that delivers maximum profit. Your challenge is to find it.

Notice I didn't mention QS once in the paragraph above. It's irrelevant. Hide the QS column, it's clouding your judgement.

[netmeg]

I also don't think you necessarily want to drop below position #5. Take a look at what you are actually paying for those clicks, as opposed to the minimum bid OR your maximum bid. That might provide some insight as to whether or not you should consider lowering your bids.

[centime]

hi hubie

at .20 , are you getting good impressions?

Does this mean there is no PPC bidding war in your sector?

[poster_boy]

Would you guys recommend lowering the my bid to .04? leave it at .20? somewhere in between?

What's your average position?

[Hubie]

I would say the majority of my account is between 3-4 position

[LifeinAsia]

I'd tweak the bids a little lower, monitor ROI, adjust bids accordingly, rinse and repeat. Which you should be doing anyway. Your competitors certainly are.