I've only recently started with adwords and made some campaigns. But on most of the keywords I get "Although your ad is showing it's ranking is not high enough to show on first page...", minimum bid is like 0.10 or 0.20 but even if I bid 0.60 or 0.70 it still doesn't show. So I was thinking how long does it take for ranking to improve if I get good CTR. And would it be worth to try bid higher. If I bid something like 1.50 for a keyword on which minimum bid says 0.10 does it mean that it will cost me exactly 1.50 or can the cost be lower then that.
Depends on your conversation rate and the profit that you are making Just estimate, if you start bidding high, will you still be profiting? If not, than of course, there is no point of doing that.
Well I can't answer that because I am just starting. My question is how long does it take for my ad ranking to improve providing I get good CTR. Like if minimum bid is 0.10, and it is not showing because of low ranking, could I bid like 1.50, and let's say just in theory I get 30% CTR on those ads, can I expect for ad ranking to improve in like 5 days and cpc to drop to 0.20 0.10 or something?
I use adwords and limit my budget within $30-$60 per month. ($1-$2 per day) So far, it works, sending more traffic to my site. The thing with adwords is, you only charged when people click on your ads. For me, I prefer looking for a keyword that has a medium value..not so high, not so low..it helps since my site doesnt generate much revenue yet. so, when the site give me profit, I certainly will adjust the budget accordingly. Generally, my ads now stay in 2-5 position. not bad for a starter I might say.
Yes raising your bids will raise your position and if your ad copy is good enough, it will also increase your ctr. You can bid high initially then lower it after a day or two. A lot of guys use this method to get fast starts on their campaigns. You can lose money initially then make it back later, but inexperienced people always bail before reaching that point.
Be careful you don't push others to put their prices up or you'll be in the same postion and everyone will just end up paying more.
And keep in mind CTR is normalized for ad position so you'll need to have a solid CTR vs other ads in that same position.
if you plan to raise the bid, You also need to ensure that you have good to great quality score. Else you would just end up paying up money to google. Most experts suggest, you should be start of with a high bid to get proper rankings, then as you get good CTR, decrease the bid.
It works like this - You bid high initially - I'd advise you to bid only as high that makes your campaign break even. Then once you get a lot of clicks you gradually lower your bids at the same time increasing your quality score and relevancy of ad text. It almost always works ....but you have to keep a close eye as to perform which step and when! Hope it helps!