February 23, 2024

How Do I Know If I Should Lower Or Increase My Bid to Improve Keyword Position in Google Ads?

Whenever a user searches a keyword in Google Ads, an auction takes place where the advertisers bidding on that keyword compete for ad positions in search results. The highest bid wins and the ad appears. Clicks on those ads can result in traffic to websites and ultimately conversions.

It can be challenging to figure out if you should lower or increase your bid to improve your keyword position. There are a few factors that you should always take into account before making that decision.

One of the best ways to determine if you should raise or lower your bid is by looking at the click and conversion data for your keywords. A high click volume and low conversion rate may indicate that you are overbidding. Conversely, a low click volume and high conversion rate could mean that you are underbidding.

Another factor that you should consider is the intent of your audience. For example, someone searching for 'leather dog leash' has much higher purchase intent than someone just searching for 'dogs'. Therefore, you can afford to spend more on 'leather dog leash' than you can on 'dogs' in order to capture the high-intent audience.

However, tinkering with bids at the keyword level can be dangerous. It is usually recommended to only do so once your campaign has been running for a few days and you have some visibility into the performance of different ad groups on a keyword basis.

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