Figuring out how to set the right bid for your business can be tough. If your bids are too high, you may reach your daily spending limit much faster than you planned. If you set your bid too low, your ad may not get enough clicks.
But don't panic: We have some best practices to share. Specifically, when setting your bids, we recommend that you...
1 Consider your daily spending limit.
• Make sure that your bids will not deplete your daily spending limit in just a few clicks.
• Example: If you have a $3 daily spending limit, don't set your bids at $1 or more.
• Think about the number of keywords that you are bidding on—remember, they share the same account daily spending limits.
2 Test the waters.
• Start with low bids, watch your account to see what's working for you, and adjust.
• Remember that it takes time (and patience) to figure out the bid amounts that will generate your desired click volume.
• Consider the value of each keyword. Different keywords have different values—for you and the marketplace.
• Example: A plasma TV is worth more than a TV remote control, so those keywords might warrant very different bids.
• Is a keyword generic or very specific? Specific "niche" keywords can often attract very engaged search users at a low cost.