Google AdWords Bidding Tutorial

by PPC Bully on September 21, 2009  –  Share This

Google Chief Economist, Hal Varian, explains how to adjust your bids to maximize the profit from your marketing investment on AdWords.

In general, when you increase your maximum CPC bid for keywords on search you are able to generate more clicks to your site. This may be because your new bid qualifies you to appear higher up in the Sponsored Links on the search results page, or because your higher bid qualifies your ad to appear in new, more expensive, auctions. The goal for you as an advertiser is to decide whether or not these additional clicks come at a cost that is still profitable for you.

To learn more on to the Google Ad Auction check the following post:
http://ppcbully.com/introduction-to-the-google-ad-auction/

{ 13 Comments }

13 Comments ( add yours now )

1. Thatcher Michelsen - RichAgent.com says:

   September 21, 2009 at 2:53 am

   Thanks for sharing this video Yefi.

   We can always count on you guys to dig up and share the good stuff

   Hal does a great job of making this tricky topic easily understandable for people who are new to PPC.
2. Mark says:

   September 21, 2009 at 2:54 am

   Thanks PPC Bully Team! Very useful and interesting video!
3. Glenn says:

   September 21, 2009 at 3:11 am

   This is very useful and very well presented – I’ll be reviewing all my campaigns with the ICC approach. Thanks.
4. Simon says:

   September 21, 2009 at 3:31 am

   Thanks for pointing this out. Looks like actively managing long keyword lists for optimum profitability is going to become a key requirement of PPC campaigns.
5. Dave says:

   September 21, 2009 at 6:40 am

   This was a very helpful video. I have struggled in this area.
6. Vijay says:

   September 21, 2009 at 9:51 am

   Great Finding, very simple way to explain the terms of PPC.
7. Brian says:

   September 21, 2009 at 11:59 am

   Thanks for a great video. Hal always does a great job of making things a lot easier to understand, which of course gives you more confidence to use the product.

   Bri Pat
8. Dean Esquire says:

   September 21, 2009 at 1:57 pm

   Awesome information given straight from the Source: Google. Google is actually showing those who are willing to seek information great ways to make more money, can’t beat that.
9. Bradd Libby says:

   October 1, 2009 at 5:00 pm

   Thank you for this post. Anyone who found the video above to be interesting might also like Optimal Bidding, Part 1: Behind the Scenes of ‘Google AdWords Bidding Tutorial’ for some of the important things Hal glossed over in his presentation.

   Also, please see Behind the Scenes of ‘Google AdWords Bidding Tutorial’, Part 2 for a demonstration of how to determine your optimal bid using Hal’s approach which does not resort to approximations.

   Thank you again.
10. Sandra Sands says:

    October 2, 2009 at 11:01 am

    Thanks for the great video, you always give out the info I am looking for, can’t beat straight from the source. Thanks
    Sandra x
11. Version Deux says:

    October 11, 2009 at 6:20 pm

    Very interesting but anyone can explain how does the math works (at the beginning) so that if I pay $100 a conversion on an item which brings in also $100 in revenue, accordingto Hal, I’m still making a profit on the sale ?

    It seems to me that I’m only breaking even.
12. Mike says:

    December 1, 2009 at 6:06 pm

    Does anyone see a problem here or it just me?
    The theory about ICC is fine if … IF on every position you will have the same conversion rate.
    Common place 1 / 2 in Google will get most traffic, but it won’t get the highest conversion rate. I am managing Google PPC account (spend $300K a month on google) and I am telling you guys, In 80% of niches position 1 and 2 will have lower / higher conversion rate when position 5 and 6. So you have to make that adjustment as well when calculating your Max Profit per Conversion, ICC etc.
    If you have question – shoot me an email and I will give you more details. mike.eft at gmail.com
13. Helen says:

    December 1, 2009 at 11:32 pm

    Very Informative! Easy, Concise and to the point… much appreciated!