In the world of paid search marketing, a bid is the maximum amount of money an advertiser is willing to pay for each click on an advertisement. However, advertisers do not place bids on ads or ad space; they place bids on keywords, and whether their ads show when people search things related to those keywords depends on their performance in an auction.

Quick Bidding Tips

We have some advice for those of you who are unsure of where to start. Google Ads has a feature that gives you an estimate of how much you need to bid to rank on the first page for a certain keyword. Aim a little higher than that to give yourself a chance at the middle of the page.

A common concern with advertisers is managing to remain competitive with their bids without overshooting and burning through their budgets. To navigate this issue, use the online tools at your disposal to see what your industry competitors are bidding on your keywords and go from there.

For the mathematically-minded advertisers, there is an easy way to calculate your CPC using only your conversion rate and your target cost per conversion (CPA). Simply multiply your current conversion rate (conversions/visitors) by your goal CPA (costs/revenues), and that figure tells you exactly how much you should be willing to bid!