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  1. #1
    Newbie
    Join Date
    August 2nd, 2007
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    42
    Exclamation Adwords Story
    So I tried Google's Adwords optimizer where they recommend new keywords and changes to your ad text etc.

    They recommended a few new keywords and suggested how much I should bid; and they also recommended higher bids for all my existing keywords. I mistakenly accepted the new bids and went back a few minutes later to change them back.

    1. For the new keywords they recommended .22 even though there are only two other advertisers in the niche. I can be third on page 1 with a .05 bid.

    2. They recommended I double my bid price on all of my existing keywords even though there are only two other advertisers for those keywords as well.

    When I tried to reduce the new keyword bids they paused them, and they even did so on 2 of my original keywords when I tried to change them back. So I just deleted those 4 keywords from my campaign rather than deal with their tactics.

    I can't believe Google tried to get me to double all of my bids for keywords with only two other advertisers. Anyway, wanted to get that off my chest and warn others who might not know the dangers of using this tool.

    - Steve

  2. #2
    Affiliate Manager bcwaller's Avatar
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    January 18th, 2005
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    244
    Remember that these are maximum bids, and not what you will always pay. Also, you are bidding not just on the search results page, but also on publisher's sites. To show up on a publisher who is getting $1 eCPM (effective CPM), your ad at 5 cents per click better get a 2% CTR (click through rate). If your ad has a lower CTR or the sites your ad fits on earn more money, then your ad will never be shown on those sites. It is possible that the 22 cent bids were to get into these sites, but you would still be paying a lower amount for clicks on the results page.
    Brad Waller | VP, Business and Affiliate Development
    EPage.com

  3. #3
    Newbie
    Join Date
    August 2nd, 2007
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    42
    Good points Brad, I didn't realize that.

    - Steve

  4. #4
    Affiliate Manager bcwaller's Avatar
    Join Date
    January 18th, 2005
    Posts
    244
    No problem. Just remember that no matter what the PPC sites tell you to bid, you are the one to determine how much is enough. If 22 cents is still going to work for you, then try it out (and track the results). If it is too much, don't do it no matter how tempting. Google's model is to make money, but they are an advertiser-centric model. They do their best to make sure the advertisers pay just enough to get clicks.

    But as a publisher, that also means that Google is charging advertisers just a fraction more than your site average to get onto your site, so allowing Google to sell ads on your site only makes you a tiny bit more.
    Brad Waller | VP, Business and Affiliate Development
    EPage.com

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