Frequently Asked Questions - Dynamic Bid Maximizer™
| Q: | Understand how BidMaximizer works with Google Adwords | | | A: | Google Adwords works differently than most of the other PPC search engines such as Overture, Miva(US) etc. Typically, you can not really control the position of your AdWords listing 100% and when it will be shown, because your ad position is determined by many factors, the most important factors are: your daily cap, maximum cost-per-click(MaxCPC), your ad's actual click through rate(CTR) and the quality of ad copy.
Since you can not directly control your ad's actual click through rate and position, so that in order to manage your keywords on Google AdWords is a big challenge and consume a great deal of time. If you do not manage your keyword bids properly, you will waste a lot on your advertising money on Google Adwords.
With Dynamic Bid Maximizer, it will allows you to change your MaxCPC dynamically base on your Position setting. It works on a "Try-Its-Best" basis. Here is a screenshot of the Dynamic Bid Maximizer™ interface for Google AdWords:
The bidding formula for Google AdWords is very complicated. Basically, Dynamic Bid Maximizer™ will control your position by increasing and decreasing the bid amount according to the bidding formula below:
MaxCPC = (Current position - Desired position) x Preserved Bid Value
For example if your desired position is "1" and current position is "5" and the preserved Bid Value is 2 cents, according to above formular, the program will increase your bid by 8 cents(=(5-1)*0.02) in order to obtain the desired position in this situation. After the bid increased, the program will check your current position to see if you have reach your Target Position. The program will repeat this steps until either you have reached the desired position or the upper limit. However, during certain times, your current position may be above your desired position, in this case, the Dynamic Bid Maximizer™ will try to lower your MaxCPC amount to save you money while maintaining your current position.
Step by step of Dynamic Bid Maximizer™ bidding process for Google AdWords:
Step 1. Check your current position in relationship to your desired position, if your current position is equal to the desired position, do nothing, otherwise go to step 2.
Step 2. Your site is currently not displaying, this means your ad is not in the search results that currently shown by Google for this particular keyword. In this situation Dynamic Bid Maximizer™ will increase your bid by the "Preserved bid value" until your ad are shown or you have reached your upper limit.
Step 3. If your desired position is lower than the positions that are showing, then the program will attempt to bid you to the last position that is showing for that particular keyword by utilizing the steps described in step 2 providing that the bid did not exceed the upper limit.
Step 4. If your ad is already showing but still different than the desired position, then the bidding formula described previously will be applied to calculate the bid changes.
Step 5. Because your position is also depended on your CTR, at certain time, even you do not increase your MaxCPC, Google AdWords may raise your position automatically base on your CTR, so that your current position may be higher than your desired position. In this situation Dynamic Bid Maximizer™ will decrease your MaxCPC to save your money while maintaining your desired position.
To summarize Google's bidding algorithm, Dynamic Bid Maximizer™ will attempt to make your ad show first under any circumstance providing that it did not exceed your upper limit setting, then it will apply the bidding formula described above. The important point to remember here is that your position is determined by more than just your bidding price. You may be paying more than the ad that ranks above yours and still showing at a lower position. Conversely it can also be true that you will be showing at a higher positions with a lower bidding price than the people who are under you.
|
| |
Related Questions
| » | I change my tracking URL in Google Adwords, however, the Dynamic Bid Maximizer wipes out all the changes and re-set them to default URL when I run AutoBid. Is there a way to not have it alter the URL? |
| | » | Why my position is not showing up on Google Adwords or why the ’Current Position’ is blank when I’m doing a look up in Dynamic Bid Maximizer™? |
| | » | How does Dynamic Bid Maximizer™ control my position on Google Adwords? |
| | » | How do I make my ads appear more often? |
| | » | What happen if my Destination URL is different to my Display URL? |
| | » | What is Google Adwords API? |
| | » | Why can't I see the "Competitor Listing" information on the bottom section of the BidMaximizer screen? |
| | » | Understand how BidMaximizer works with Google Adwords |
| | » | When I search on Google, my ad is showing up, but when I perform a Keyword Look Up in BidMaximizer, my ad is not showing in the "Competitor Panel", why? |
| | » | How quick can BidMaximizer achieve my Target Position? |
| | » | My Target Position is #1, I run BidMaximizer once, but it does not change my position to #1, why?
(I just start to use BidMaximizer for my Google Adwords and I want to be #1 position. I run the AutoBid, but my ad still stay on #5, why?) |
| | » | Most of my keywords have a #1 position before using BidMaximizer, after use BidMaximizer, some positions have dropped, why? |
| | » | How can BidMaximizer save money for me for Google Adwords? |
| | » | Is BidMaximizer able to import “Adgroups” into my Google Adwords account?
(Or can I create new AdGroups with BidMaximizer?) |
|
|
