Keyword Bidding Strategies to Increase Profitability

What is keyword bidding?

Are you trying to increase your sales and ever thought of using a keyword bidding strategy to increase your profitability?

PPC advertising is a great way to market your business to many internet users.

An important part of this marketing is keywords. When it comes to PPC advertising networks, keywords not only have an impact on your success. They may also impact how much PPC advertising costs.

In other words, a PPC keyword bidding commonly used in Google AdWords is a keyword bid placed in a PPC auction. This help to secure ad placement at the top of search results.

Online businesses bid on specific keywords or keyword groups to secure ad space for important terms relative to their business.

Keyword bidding strategies

Bidding strategies have become one of the cornerstones of a good Pay Per Click (PPC) campaign.

Google continues to improve their smart campaigns, but a click-and-go solution still belongs to the future. Therefore, successful bidding still very much relies on how you set up your bidding strategies and campaigns.

Keyword bidding strategies are now more malleable, with a growing number of features. This means they’re complicated. Even when Google moves towards simplification such as consolidating bid strategy types. Understanding how to get the most out of them can be tricky.

What are keyword bidding strategies?

Keyword bidding strategies are also known as smart keyword bidding or automated keyword bidding. This sets bids algorithmically for each individual auction based on the targets you input.

There are six main bid strategies:

  • Maximise clicks
  • Maximise conversions (with optional target Cost Per Acquisition or CPA)
  • Maximise conversion value (with optional target Return on Ad Spend or ROAS)
  • Target impression share

Best practice for keyword bidding

We’ve got years of experience with keyword bidding strategies of all varieties. And we’ve used them to drive everything from leads to product sales. However, keyword bidding strategies are not a black-box solution to all your problems.

Here are our top tips for how to get the most out of them:

  • Don’t use keyword bidding strategies if you don’t have enough data
  • Get the basics right
  • Feed bid strategies as much relevant information as possible
  • Set realistic targets
  • Set minimum and maximum CPCs
  • Don’t change them too frequently
  • Adjust them to unique circumstances
  • Understand how bid adjustments work within bid strategies
  • Keep analysing them

Keyword strategy tools

Get an idea as to how much money certain keyword advertisements are selling for. You may want to use a keyword planning tool.

These tools give you an idea as to how popular keyword advertisements are going. It may also help you save money.

Having an idea as to what you should pay may end up preventing you from paying too much. Or bidding can be too high as well.

These keywords will be what your advertisements are associated with. They will also have an impact on which websites your ads appear on.

For instance, most PPC networks try and match up content keywords, from a website. They use your keywords, the ones that you selected for your advertisements.

For this reason, you will not only want to choose popular keywords. You will also use keywords that are related to your online business or the products that you sell.

Keyword bidding cost

Once you have determined what keywords you would like to have associated with your advertisements, you will then want to examine how much those advertisements will cost you.

Different PPC networks operate in different ways, but most require online business owners, just like you, to bid on popular keywords.

Keyword bidding factors to consider

When choosing your maximum bid, there are several important factors that you need to keep in mind.

One of the biggest questions to ask yourself is what are you promoting?

Are your advertisements going to bring internet users to a specific product or the main page of your website?

If you are only promoting one product, you should only count on selling one product.

If you are hoping that your customers will make multiple purchases, you may want to determine what your average sale amount is.

Keyword bidding profitability

This will make it easier for you to determine how much you can afford keyword bidding, while still being able to make a profit.

It is also important to examine the amount of profit that you would like to make. For instance, if you are looking to make the largest profit, you may only want to pay ten cents for each of your advertisements.

Say those advertisements were clicked thirty times, you will be charged three dollars total for the keyword bidding. 

Now, say that ten of those clicks result in a sale, an average sale of twenty dollars; you will have made a total of two hundred dollars. Not bad for only spending three dollars on advertising!

Keyword profitability formula

The abovementioned formula is just one of the many that you can use to determine how much is too much to pay for keyword bidding.

There are several other formulas that you can use to come with up the same or similar results. However, you calculate your profit, it is important that you do so.

Knowing how much you stand to make or even lose will allow you to use PPC advertising so that it can benefit you and your business.

PPC advertising may help you generate sales, but it will not do you any good if you cannot profit from those sales. That is why it is important to estimate your profitability and keep that profitability in mind when choosing your max bid.

Competitive keyword bidding

If you have been looking into PPC advertising networks, you may have heard about the importance of keyword bidding.

You are often advised to choose high costing and related keywords. After all, they tend to be the most successful ones. While this is true, you may be concerned with the cost of advertising, particular with popular keywords.

What would you say if there was a way that you could still use PPC advertising to your advantage? But without having to pay more than you could afford? There is and that way involves using semi-related keywords.

Before examining how semi-related keywords can help you in keyword bidding at a lower cost. It is first important that you know what semi-related keywords are.

When signing up with a PPC ad network, you need to choose the keyword that you would like your advertisements to be associated with.

For the largest success, you are urged to choose keywords that have a direct relationship to your business or the products that you sell.

For instance, if you were running a business that sold nursery supplies. A popular keyword phrase you can use for keyword bidding for nursery supplies since nursery supplies is a highly searched keyword. It costs a relatively decent amount of money.

Choosing a semi-related keyword phrase, such as garden supplies is likely to reduce the amount of competition. This could still produce results.

If you are interested in finding semi-related keyword bidding, you need to research them in the same way you research popular keyword phrases.

You will want to use keyword research tools or keyword suggestion tools, like Google Keyword Planner which comes for free.

Search with a keyword bidding tool

When using the abovementioned tool, you will see that the most searched phrase is nursery supplies.

Your search results will start with the most popular keywords and then descend from there. 

You will want to start choosing keywords or keyword phrases from the middle of the list you will use in keyword bidding.

These are keywords that are not as popular, but they can still be considered related keywords, and semi-related keywords.

I will cover long-tail and short-tail keywords in another blog.

Although you might assume that using semi-related keywords, one could expect a negative impact on your advertisements. This isn’t the case.

In fact, using semi-related keywords during the keyword bidding process may improve your overall results.

This is due to the lack of competition.  Many business owners assume that they need to choose the most popular, most successful, and highest-costing keywords.

While this will bring success, it also brings a large amount of competition. Having a lack of competition may increase the number of websites that your advertisements are shown on. 

This will, in turn, increase your chances of receiving a click-through. This is the case when internet users click on your advertisements, instead of just glancing at them.

If you are interested in digital sales funnels click on this link RAS Digital Marketing.

As you may have already assumed, keywords that are considered semi-related or non-competition keywords cost less money.

The cost of semi-related, no-competition keywords is just one of the many reasons why you should consider using them. Even if it is just on a trial basis.

In fact, using these low-competition keywords in your keyword bidding process is a great way to test the waters. If you are unsure as to whether you should join a PPC network, this is a great way to experiment.

Although using no-competition keywords and semi-related keywords is a great way to save money when doing keyword bidding, it isn’t your only option.

Most PPC networks allow you to set a daily limit for yourself. This means that you can actively participate in a PPC network, without exceeding your advertising budget.

Key take away

Despite what you believe, you do not have to choose popular or high-paying keywords to benefit from PPC advertising.

Check your keyword performance

When using PPC advertising to your advantage, the keywords that you choose are extremely important.

In fact, the keywords that you choose to associate your ads with will have an important impact on where they appear, as well as their success. That is why it is important that you carefully choose your PPC advertising keywords.

Below are a few keyword tips

One of the best ways to determine whether a particular keyword or keyword phrase is good or popular is by examining how much money they are selling for. When it comes to keyword bidding, you will find that the best keywords are the ones that go for the most money.

Since it is impossible to tell on your own how many keywords are going for or what their current bids are, you will need assistance. This assistance can come from a tool that is known as a keyword planning tool.

Online, there are several websites and tools that claim to give you up-to-date and accurate keyword bidding options for several keywords or keyword phrases. For the most accurate and up-to-date information, you are urged to use the tool Google provides.

As mentioned above, the most popular and effective keywords or keyword phrases will be the ones that cost the most money or the ones that have the highest keyword bidding.

Although associating these keywords with your advertisements will cost money, it is worth every penny. You will find that most PPC advertising networks allow you to control the amount of money that you want to spend each day.

Key takeaway

Checking the current bids of popular keywords is an easy and effective way to make the most out of PPC advertising.

Your challenge

This means that you can still participate in keyword bidding even if you are on a budget!  With something this easy, why wouldn’t you want to give PPC advertising a chance?

With PPC advertising, you can limit the amount of money that you spend each day. This is just another reason why you should give PPC advertising a trial run.

Try the PPC advertising and let us know how you are doing.

If you need assistance with PPC please click on this link and make contact with us.

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