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For most local small business, we think that pay-per-click (PPC) advertising on both Yahoo Bing Network and Google is the right solution because you can get about 100% coverage or search traffic in marketplace. The problem for most local businesses is not going to the expense of advertising, but, finding enough quality clicks to buy via search engine marketing. - See more at: http://fitsmallbusiness.com/ppc-bidding/
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For A Local PPC Campaign on Bing & Google !
Bidding & Budget
In this presentation, I am going discuss issues surrounding bidding strategy. This article will focus on Bing Ads, however, the principles discussed in this presentation can be applied when using Google Adwords as well.
For most local small business, we think that pay-per-click (PPC) advertising on both Bing and Google is the right solution. The problem for most local businesses is not going to the expense of advertising, but, finding enough quality clicks to buy via search engine marketing.
The Smaller Your Budget The More Bing Ads Make Sense
However, if my budget was really tight, let’s say $100 per month, I would advertise with Bing because buying clicks from Bing Ads is cheaper. Below are the average cost per click numbers as reported by AdGooroo.
The Smaller Your Budget The More Bing Ads Make Sense
For a local brick and mortar business, I would initially start my budget with $15 per day. If you are in a highly competitive industry where each sale is worth big bucks, the budget you will need to allocate initially will increase. !
Start with a $15 per day maximum budget.
At the end of the day, it all comes down to revenues and profits. How much are you willing to spend to acquire a new customer? The goal of the initial budget is to give you enough information to see if you can achieve that goal. !
Figure out before you start what you are comfortable paying to acquire a new client.
When you initially set-up the campaign, you will have the option of setting the campaign as prepay or postpay. Once you make the designation, keep in mind that you will not be able change it for the account. With prepay, you pay in advance and as clicks are generated the cash gets drawn down from the prepaid amount. !
Select the pre-pay option without using the autopay option.
Daily and monthly limits come in two varieties: Accelerated (spend my money ASAP) and Standard (try to run ads to make the budget last the entire day or month). We suggest standard, as running an accelerated campaign will use up your budget in the morning. !
Set daily spend limits for the campaign.
(1) Budget (2)The traffic and search intent (3) The ad copy (4) Positioning
How many clicks your ad will get will depend on four factors:
Your maximum bid is the highest amount that you are willing to pay for a click.Bing and Google have two objectives: To maximize their revenue and to provide a good experience to their users.
How is your ad position determined? Bidding Is Important
Bing and Google are also very concerned about user experience. They want the ads to to be relevant to the search being conducted and the landing page to deliver what is promised in the ad.
Take Away: The click thru rate (CTR) of the ad is very important for positioning
With that said, bidding is certainly the easiest factor to change. Bidding can be done in two ways. You can set-up bids for an ad group. The bids will apply to all the ads in the group. Or, you can place bids on individual keywords. When you manually set the bids for words, it overrides the settings of the adgroup for that particular words.
Take Away: Relevance of the ad and landing page to the search makes a big difference.
Many people click on the first listing that appears when they do a search, without necessarily reading the advertisement and seeing if what’s being advertised applies to them. If they click on the second or third advertisement down it can be inferred that they are reading the advertisements and choosing to click on the ad. This results in a higher quality visitor.
Start in 2nd or 3rd position
Bing provides a tool which provide the approximate bids that you will need to be in each position. However, its only approximate and doesn’t take into account quality scores or the historical CTR of the other bidders.
Bid based on the value of the click to you after you have data.
After you let the campaign run for a month, it might be time to take a look at positioning. If you’re
easily beating your cost per new client acquisition, its probably time to move up a position and get that
extra volume. !
Being in position one should almost double the number of clicks. On other hand, if the numbers are too high moving down positions might make sense.
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