ok imagine these thoeries, If these were your current stats CTR 1% CPC $1 CR 1% which scenario would you like best to happen next and why 1. Increase in CTR, drop in CPC, drop in CR 2. Drop in CTR, increase in CPC, increase in CR 3. Drop in CTR, drop in CPC, increase in CR 4. increase ctr, increase coc, drop in CR Assume increase or decrease variable between 10% and 20% max Acronyms (for the newbies) CTR = click through ratio CPC = (Cost Per Click) CR = (Conversion Ratio)
I'd choose whichever ended up providing more conversions, still at a good ROI. Frankly, you can't control all of those factors, but you can try to get them to happen and compare.
Your clickthrough rate is poor, but how poor depends on your advert's position. Why aren't people clicking on your advert? If you don't answer that, changing the bid won't make your campaign much more successful. Either you don't have/do what they are searching for or your advert isn't catching their attention. Remove keywords that don't strongly relate to what you're doing, and test new, more compelling, adverts. Improving your clickthrough rate should, over a period of time, improve your Quality Score, so you should be able to bid less and retain the same position. Whether it's the most profitable position for you is something you'll have to establish by running your advert in different positions. But if your conversion rate or clickthrough rate changes, so will your optimal position. Improving your conversion rate is always critical, no matter what your website does. 1% may be brilliant or dreadful, depending on your specific business. But anything you can think of that will improve things is a no-brainer. Try it (using Google's optimiser tool), and see if you can improve your conversion rate. The higher it is, the more valuable clicks will be to you, the higher you can bid, and the more conversions you'll get.