Google Adwords Introduced Preferred Cost Bidding
Instead of using the max CPC bidding option, Adwords advertisers can opt-in to the preferred cost bidding option, which was introduced in April. With preferred cost bidding enabled, AdWords automatically changes your ad position as it works to hit your preferred cost-per-click bid for every click.
Instead of setting a maximum cost-per-click (CPC) or cost-per-impression (CPM) bid, you can set a preferred CPC or CPM bid that represents the average price you want to pay.
For example, suppose you want to pay an average CPC of $0.50. Currently, you need to regularly monitor and adjust your maximum CPC bids to keep your costs at or around $0.50 per click. Using preferred cost bidding, you can simply tell us that you want your average CPC to be $0.50, and we’ll manage your bids to reach that goal.
Here are the possible compatibility issues of preferred cost bidding to other existing Adwords functions:
- It is not possible to have both preferred and maximum bids in the same campaign.
- Preferred cost bidding is available on the campaign level, so all ad groups and keywords under that ad group will inherit the bidding option.
- The position preference feature will not work if you use preferred cost bidding.
- The Find/Edit Max CPCs tool will not work for campaigns that are set to use preferred CPC bidding.
For Search Network advertisers, the actual cost of any one click will not be more than twice your preferred CPC bid. For Content Network advertisers, the actual cost of any one click will be more than four times your preferred CPC content bid. Also, it is recommended that you enable separate content bids for your campaigns.
Posted on May 7, 2007
Filed Under Adwords, Contextual Advertising, Google, PPC |
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I’d like to hear people’s experiences with preferred bids vs. max bids. Google often produces higher avg bids then my preferred bid setting, resulting in a higher cost and higher ad position than I was aiming for. Anyone else?
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