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With more bidders now competing in virtually every Adwords niche and vertical than ever before, and Google constantly making changes to squeeze out more profits for them and their shareholders, you need to have a great bid management strategy to be successful. Many marketers focus a lot on keyboards, ad copy and split-testing, but then forget to master bid management.

This mistake is one you don’t have to make and can easily avoid by following the tips below.

Adwords Bid Management Best Practices

cg guarantee imgAn effective bid management tip to get you started straight away is to start using different bids based on geographic location. Let’s say you sell a product in multiple countries, including both the USA and Australia. It may be more convenient to just put both countries into one group and then use the same bid for both countries.

However, it won’t be the most profitable approach. You see, in most cases, there will be fewer competing advertisers in Australia since it’s a smaller market. Therefore, you probably don’t need to put in as high a bid to grab the same ad position in the Google Search results!

Be Careful With Automated Bidding

Google introduced automated bidding to help simplify and automate the process of using Adwords for advertisers. It often leads to an improvement for advertisers who have poorly optimized Adwords accounts.

However, the downside is you sacrifice a lot of control and opportunities that come with manual bidding. In most cases, to get the lowest click costs you will be better bidding manually and staying clear of automated bidding.

AdWords PPC Return On Investment VS Net Profit

A common Adwords bidding mistake is to aim for the highest ROI percentage possible rather than looking at the most profitable overall bid price. By bidding ultra low you may get a very high ROI, but usually the volume will be so low that net profit will be small. Always look at your net profit metric first when calculating your bid price!

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