I used google adwords diagnostic tool to check if one of my ads are shown on one keyword, the tool shown me a message :
Although your ad is showing, it is not ranked high enough to appear on the first page of search results.
This keyword's Maximum CPC was $0.5, then I try to increase it to $0.8.
I'm surprise that the traffic estimates funtion shown me less clicks and lower position.
Then I increased the CPC to $1.5 to see what happen, god, it shown me worst position and click number.
So, I decreased the CPC to $0.2, and the traffic estimates function shown me the position is #1.6
Then I adjusted the CPC to $2.0, now it shown me the position is #1.2
Actually, there are over 20 bidders are bidding the keyword, I have no idea how much Maxim CPC I should set in order to stay in the first page.
Well, in order to 'ranked high to appear on the first page', according to the traffic estimates function, should I increase or descrease Maxim CPC?
It make me confused.
This keyword's Maximum CPC was $0.5, then I try to increase it to $0.8...
jimpoo, one thing that will help you interpret how much you should increase your Max CPC is to keep a sharp eye on your Avg. Pos stats (and, also, to use the date range tool to your advantage).
So, for example, let's say an important keyword has a Max CPC of $0.5 (fifty cents). You then check your stats for the date range of 'Yesterday', and see that your Avg. Pos for keyword shows you at position 26 (thus, page 4). This tells you that you have a substantial amount of competition, and that you'll most likely have to raise your Max CPC a fair amount to get on page one.
At this point, I'd advise raising your Max CPC as high as you are comfortable with, and then letting your ad run for a while. Be sure to monitor to see what the Mac CPC increase actually does to your position: perhaps by actually searching for your ad once or twice, and then using the date range tool/stats.
Well, in order to 'ranked high to appear on the first page', according to the traffic estimates function, should I increase or descrease Maxim CPC?
All other things remaining the same, raising your Max CPC will have the affect of improving your position. And lowering it will lower your position.
(By the way, improving your Clickthrough Rate (CTR) is another excellent way to improve your position - while helping you to pay less.)
AWA