Adwords Introducing Preferred Cost Bidding
Topics: Google Adwords, Internet Marketing
Google introduced a new bidding option today called preferred cost bidding — a feature designed to help you save time while achieving your advertising cost goals more consistently. Instead of setting a maximum cost-per-click (CPC) or cost-per-impression (CPM) bid, you can set a preferred CPC or CPM bid that represents the average price you want to pay.
For example, suppose you want to pay an average CPC of $0.50. Currently, you need to regularly monitor and adjust your maximum CPC bids to keep your costs at or around $0.50 per click. Using preferred cost bidding, you can simply tell us that you want your average CPC to be $0.50, and we’ll manage your bids to reach that goal.
This feature will be released to all advertisers over the next few days. You’ll find it on the Edit Campaign Settings page in your account.
I’m kind of neutral towards this new feature, simply put it - I won’t use it much.
For me, CPC is not the first thing I look at, I look at my keywords position AND my conversion first - and then I figure out whether the ROI is positive at that amount of CPC. I then adjust my CPC to obtain the keyword position and conversion I like. By controlling the CPC amount first, you are NOT controlling your keyword position and conversion as it should be - its simply a backward approach to doing PPC.
Technorati Tags: Google Adwords, PPC, Pay per click, Outsource internet marketing
