Setting the right max CPC for KWs

[sarvan]

When starting a campaign with a Manual bidding strategy, how do you set the max CPC for KWs? Also, is it right to increase the bids for KWs to the 'first-page bid' suggestion that Google gives after a day of running the camapaign?

 

[roydan]

When starting a campaign with a Manual bidding strategy, how do you set the max CPC for KWs? Also, is it right to increase the bids for KWs to the 'first-page bid' suggestion that Google gives after a day of running the camapaign?

I usually start with grouping the keywords to closely related groups.

Then I multiply the max CPC from SEMRush with the search volume of each word. Then I divide the sum of that value with the sum of impressions per ad group and lower it by 30% and use it as the bid for the ad group.

Doing it like that makes it easier to identify cases where the max CPC suggestion is way off because you see them in the context of the group. Most often than not, I also exclude them from the previous calculation, too.