A bid is the maximum amount of money that an advertiser is willing to pay for ads display.
If you set a low bid, your ad is likely to either be shown less frequently or not win any auctions (in the worst case). At the same time, you might not want to set a too-high bid since it can ruin your budget very fast.
Tips for Placing Bids
Here is a couple of tips on how to place bids so you can benefit the most:
Consider Different Keywords
Some keywords require higher bids than others. For example, too generic and popular keywords in big cities might cost you quite a lot. Consider more specific keywords and different locations.
Take a Look at the Average
There are many third-party tools that show you the average bid on a specific keyword. It will help you to estimate the bid that is neither too high nor too low.
Define Your Goal
Do you want more people to know about you? Do you need more sales? Do you need more leads? Based on the goal, you will either target a popular keyword, pay more, and have more visitors, or choose specific keywords for people who are ready to buy rather than discover.
Analyze and Adapt
Look at your statistics and find out whether you have to put bids higher or lower.
