Paid Search Advertising that Delivers Maximum ROI (Part 8)
(a) Maintain Target Position
Your aim is to target the position #3 however your ad appears on the position #10. Knowing that the current holder of the position #3 pays $0.51 per click you can improve your position and take over his place by bidding $0.52. This strategy sometimes tends to drive up the keyword prices so be aware you don’t cross the limit of spending $1.00 per click.
(b) Remove Bid Gaps
Overture defines the bid gap as “the difference between the amount you are currently paying for a click and the minimum you could be paying to still remain above your next highest competitor in the search results.” For example: You pay $0.70 per click and your next highest competitor pays $0.60 per click. You can pay just $0.61 per click and still be placed above your competitor. By closing this bid gap you save $0.09 per click which in 1,000 clicks is saving of $90!
(c) Control your Maximum Cost per Click
