Let's assume I discovered a 0.02 keyword that converts well, at least my ad copy does What to do? Raise the CPC to improve visibility going up to position 3-7 or just stay with the low CPC on position 8 and hope converts fly in? The chance of getting more sales should be quite big in my opinion if I'd slightly raise the CPC to let's say 0.10 .. ? and just see...
Test and keep testing. Raise the bids, see if you're happy with your return on investment. If you are then keep it or increase again. You can always put it back down.
what is your cost per action? figure out how much each keyword costs you and then raise the bids. I used to say - if i had a benchmark of say $10 cost per action, and the current CPA in the campaign was $5, I would raise the CPC so that I could be just below $10 per action
Raise the CPC first, get position 3 - 5. When you get more traffics and history, lower your CPC again, you can still keep your position.
it depends on volume and frequency of conversion. Is that 0.02 per click a conversion 1 a month? If you raised you CPC to average about 0.10 per click and got a conversion 1 time a day, what would ROI be?
move to a very specific ad-group. test the ad copy and adjust bids accordingly till your ROI has hit its optimal point
If a search term is converting why would you want to leave it in low position. I would want that term getting as much traffic as possible. You need to know what your Max CPC can be while still maintaining positive ROI. I would play around (test) with moving up, and tracking conversion to cost ratio and if you are still in black great, if not reduce CPC to maintain positive ROI. Find that magic spot! Secondly, I would take those search terms that you know are converting and create new web pages, and write original content around those terms, why not try and drive organic traffic on terms you know convert (SEO 101 Baby). PPC is a great tool to measure terms that convert and turn those specific terms into web pages for Natural Search... Good Luck!
Lol not true to the "if it ain't broken don't fix it". There's a such thing as improvement. It's how we make more and more money spending less and less. Business 101! What I would do is boost your bids to $2 a click. I'm serious. Set position preference for #1. Daily budget capped at $20-$25. Pull a 5% or higher ctr for a few days if you can manage and then start throttling your bids back to a more sane level. You will keep your position and pay less and less and get oodles more traffic. They won't charge you 2 bucks a pop, don't worry. You just want to ensure you're outbidding the current #1 guy. You know those guys that pay 10-30 cents a click and somehow maintain first position for competitive terms? Yeah. This is how it's done. Only to a more extreme degree. You'll figure out a few of the nuances on your own as you develop your campaigns.
This is an old technique and no longer applies due to googles implementation of position normalizing. This used to work in the past, not so much anymore.
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you have to optimize it to its maximum potential. If your not doing that then i guess your making millions of dollars and it dont make a difference. The whole point of business is to make more sales and create more revenue.