Google Adwords To Add Bid Management?

Posted on 04. Apr, 2006 by in Google

Things definitely don’t move slowly at Google. There are rumblings in the online SEM community about Google Adwords adding additional “bid management tools”. This news, no doubt, has bid management software makers shaking a bit.

It seems this new feature will help you determine the position of specific keywords in your Adwords account. You will be able to activate each campaign and decide for each keyword, where you would like it to be placed. This feature brings Google’s operating methods closer to that of Yahoo.

The cost for bidding on a specific position will be based, as with Google’s typical structure, on the keyword, the position you choose, your maximum bid and, the all-important, Quality Score (more on that later).

Why is this feature necessary? Well, it’s not, but it is useful to those who are interested in holding their position. For instance, if a company wants to hold the 3rd position for their keyword, and are willing to pay for that privelege. If your bid is higher than required to get your ad in 3rd place, Google will lower your bid automatically…which will put you in 3rd position and save you money. In the opposite case, where your maximum bid does not qualify you for the position you desire, your ad will not show, because Adwords rules still apply and thus the Quality Score is of utmost importance.

In addition to specifying a single position, you can specify a range of preferred positions. Again, each keyword is monitored separately.

Our advice is to be careful when using this new feature. Google’s representatives warn that setting your position preferences errantly can contribute to a sharp decrease in your impressions, as your ad might not show in many circumstances. If you find your impressions have drastically reduced using this option, try to broaden your preferred position range and consider making changes to your keyword and your ad, to improve your quality score.

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