Mystery of initial AdWords suggested max bid

is there anything to learn from this #

[Slud]

Does anyone know where the initial max bid suggested for a new AdWords's ad group comes from?

Everytime I enter a new batch of keywords, I'm totally baffled by were this number comes from. Is there anything to learn from it?

[chiyo]

Google says its based on what users of the old Adwords program paid, so it was fair to them. The old adwords program is now ceased. The minimim bid remains.

[steveb]

I think Slud was asking about the number that first appears, rather than the minimum bid. In my case, $5.00 appears, which apparently would get me above (or probably equal to) the existing top bid. If I just ignore that number and enter .01, it then gives me the "minimum bid" of .88. if I ignore that again, I can enter a bid under the minimum if I want to forgo US clicks. Since I want US clicks, I enter .89, but my clicks average aabout .60 these days.

Anyway, that has been my guess for where that very high original number comes from in my case... one bidder lists $5.00, but only has been paying .90, a penny above my .89 (although I've finally overtaken them so whatever their bid is now doesn't matter).

I'm not saying this analysis of that original number is right tho... :)

[jen24815]

I just ran into this same question.

I have 2 related sites. On my campaign for one, I target a wider variety of keywords and it says the maximum CPC should be $0.59.

On the other, I target a subset of those keywords - the exact ones, just not ALL the ones I do in #1 and it says the maximum is $2.74.

When I look at the numbers for estimated clicks per day, they're the same...?

[chiyo]

sorry i misread "max bid" for "min bid". Jen we have a couple of threads on the "min bid" problems before.. its the reason why we still personally use overture and not google for most of our PPC. Overture is still far cheaper for niche and multi word phrases; Google does not seem to reduce min bid levels for additions of limiting targeted keywords. You end up paying around the same for the broader terms. Just cant find the threads at this time. I wish i had time, as this is off topic (due to my fault sorry!)

[lgn]

Minimun Keywords for Adwords select was based on a formula for what people would pay under the old Adwords CPM Model.

See the following thread for a more indepth discussion:

[webmasterworld.com ]

[Mike_Mackin]

>Minimun Keywords for Adwords select was based on a formula for what people would pay under the old Adwords CPM Model.

But is this true for those webmasters in the Euro market?

[Mike_Mackin]

>But is this true for those webmasters in the Euro market?

BUMP

Does adwords min bid work the same way in Europe?