I have read important marketers (for example Uberaffiliate) say that you have to bid strong to reach #1 or #2 positions at start without worrying about losing money, I mean spending more than the earnings. This way you'll get a high CTR and QS. Then you can gradually lower your bids to an amount that makes you money. What do you think about that? My problem is that I'm running an offer with an EPC of $0.5 but to reach the 1-3 positions of a good kw I should bid between $2 and $2.5. What should I do? Bid high? PS: EPC is earnings per click, isn't it? This means that for 100 clicks I should earn $50, a bit more than 1 sale, right?
yes thats what i have heard of as well..i am still testing it....but it takes a hell lot of time to decrease the CPC....to decrease CPC and be in same quality score and position...make sure u have good CTR otherwise you will not be able to decrease the cpc
i would recommend high bid but it also depends upon the copy of your ads. yesterday i had a keyword with 100% ctr, 5 clicks, bidding $1,the position of ad was 14 and the avg cpc was $0.04. So it all depends upon how attractive you ad is.
Yes, you should certainly follow that tactic if you plan to make long term profit from that keyword. ALL super-affiliates use that tactic because it works, and it works effectively. Just bid those $1.50 dollars from the beginning. Once you see that you are getting clicks in; and that your CTR is at least 4%, start decreasing. Decrease at a rate of 10-15% per day. So $1.50 first day, $1.35 second day, $1.20 third day; and so on. Always remember that to never make any major changes to your campaigns, all changes must be gradual. And if you keep following through with this tactic; then you'll be bidding close to a 0.50 per click or less; and still be in the top positions. But I just want to say that a $0.50 EPC is low for the price of number one spot for that keyword. You need to get $0.05 at most; if you want to profit. Which will be tough.
$0.50 EPC and positions 1-3 require $2.5 or a bit more per click for the main keywords. Do you think that I chose a bad campaign?
Ok RichUser, I'll work on new, cheaper and more selective kw...I hope to get some inspiration. The more active kw are around $1.5 and they are on average in 5 position (the best is 3.5)...I started splitting them so let's see in the next few days if I have improvements but if not then I suppose that I should stop those expensive kw.
Yes what uberaffiliate said about bidding high to start is a very effective method and here is why When you start out high in position 1, 2 or 3 you are establishing history for that position. When you start to back off bids slowly, google will still think you should be a 1, 2 or 3 advertiser so your ads will not drop position as you lower bids and eventually you get high ranks for about 20% less than the competition. But this tactic takes a little time and money If for example you started in position 7 and established history there for a week to a month and then decide that you want to be in position 3, you are going to have to climb out of position 7 and bid about double until you are positioned in rank 3 and stay there long enough to overwrite your old history of a position 7 advertiser. This is way many people find it hard to start low and go high, but is faster and easier to go high and bid low and still maintain higher ranks and higher CTR's