How Should I Set My Bid for Keywords?

The short answer is to consider bidding slightly above the lower end of the top of page bid high range. For example, if the top of page bid high range is around $6 to $18, placing a bid of $8 or even $10 can be effective. Most importantly, make sure that running ads at that bid is still profitable for your business.

Full Explanation

When deciding how much to bid on keywords, the amount you choose should reflect not only the typical range but also your own profitability. The top of page bid high range provides a useful benchmark showing what competitors may be paying to appear at the top of search results. However, simply matching or beating those bids without considering costs and revenue isn’t enough. You need to assess if spending those amounts on ads brings you profits once all expenses are accounted for.

If you find that bidding around $8 to $10, when the range is $6 to $18, still allows you to make money, then this is a good approach. Especially in the early stages of building a business and establishing a brand, investing in ads even at this bid level can be worthwhile for gaining visibility and customer traction.

Step-by-Step Breakdown

1. Identify the top of page bid high range for your target keywords (e.g., $6 – $18).
2. Consider placing your bid slightly above the lower range point, for example, $8 or $10.
3. Calculate if running ads at this bid level remains profitable after including all costs.
4. If profitable, proceed with the bids to help build your business and brand.
5. Monitor results and adjust bids if necessary while keeping profitability in focus.

Real Examples

For instance, if a keyword’s top of page bid high range is between $6 and $18, a bid of $8 or $10 is a strategic choice. It balances competitiveness with cost. This bid could help your ads appear prominently without unnecessarily inflating spending, as long as it results in a profitable investment.

Common Mistakes

• Focusing only on the bid amount without considering overall profitability can lead to losses.
• Setting bids too low to save money might result in poor ad placement and lower visibility.
• Ignoring the building phase of your business and brand might cause missed opportunities for growth by being overly cautious with bids.

FAQs

Q: Should I always bid the highest amount in the range?
Not necessarily. Bid enough to be profitable and competitive, which might be above the lower end but not always at the top.

Q: Why is profitability so important when setting bids?
Because spending on ads that don’t bring in profit will hurt your business in the long run.

Q: Is it worth bidding higher during the early phase of my business?
Yes, investing in ads during the building phase can help establish your brand and customer base.

Key Takeaways

• Use the top of page bid high range as a bidding benchmark.
• Place your bid slightly above the lower range (e.g., $8 if range is $6-$18).
• Always ensure your ads remain profitable after costs.
• Investing adequately in ads is important in the early business and branding stages.
• Monitor and adjust bids based on performance and profitability.