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How do I know how much to bid on an Adwords campaign

Discussion in 'Adwords' started by gnr993993, Jan 3, 2017.

  1. gnr993993

    gnr993993 Junior Member

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    I have no idea if to give it a low or high price.. What's the differnce?
    I sell things from 10 to 50 bucks, it has to do with how much I should bid ?
     
  2. nes22

    nes22 Registered Member

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  3. ooo

    ooo Newbie

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    gnr - did that video answer your question or do you have follow up questions about your situation?
     
  4. ooo

    ooo Newbie

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    Here's another video showing how Google determines how much you pay and the importance of Ad Rank:

     
  5. sunny_clicks

    sunny_clicks Regular Member

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    dosent matter much how much your product is worth, what matters is how much adwords want to charge you for showing your ads. Check the videos above they should answer your queries.
     
  6. ooo

    ooo Newbie

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    Actually, it does matter how much your product is worth if you care to get a return on your investment. If you sell a product for $10 and pay $1 per click on average, and you convert 10% of your clicks, you're basically breaking even on the advertising cost -- so, is it worth it? It depends on the lifetime value of a customer to your business.

    I have clients who pay for clicks valued at about 1/3-1/2 of the asking price for their service - not to mention that not all of them convert. However, the lifetime value of those clients is much greater, so it makes it worthwhile to advertise.
     
  7. thekingofwholesale

    thekingofwholesale BANNED BANNED

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    What is your profit per sale? Is it the $10 to $50 or is that your product total cost?
     
  8. sunny_clicks

    sunny_clicks Regular Member

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    Hey Genius, RE-READ what one wrote in a post and try to understand what is written before quoting them. Rather than trying to simply increase your post count and confusion others in the process.
    Answer this: If I am selling 3 kinds of socks on my site and one costs 1$ a pair, 2nd costs 10$ a pair and the third type costs 100$ a pair and I run adwords for a single keyword "buy socks online" . Do you believe that Adwords will charge me separately based on which particular type of sock is in stock? :rolleyes: Duhhh!!

    I shudder to think what your "Clients" might have to face... (lol)
     
  9. RoyDanino

    RoyDanino Junior Member

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    The best way is to bid differently for every keyword by multiplying the sale profit from each item and the conversion rate from click to sale (Max CPC=Profit from sale * CR).

    If you don't have the data yet, try examining your organic results. Just bare in mind that organic results are often different from paid results in terms of conversion rate .
     
  10. sixinchnails

    sixinchnails Jr. VIP Jr. VIP

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    :D:D:p
     
  11. ooo

    ooo Newbie

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    OMG, you gave me a good laugh. Ok, guilty as charged. I did read that and responded too quickly. Point taken, lesson learned.

    - newbie. :oops: