Lowering bids to increase PPC traffic

Increasing bids in a Pay-Per-Click (PPC) / search engine advertising campaign improves ad position, which usually increase the number of impressions and clicks. However, if you have a fixed daily budget that is always being spent, you will get more clicks if you decrease bids. Here’s why: The total number of clicks you can get is equal to your budget divided by your average Cost-Per-Click (CPC). You can get more clicks by increasing your budget, but you can also do so by reducing the CPC. Lowering your bids can thus increase in your PPC traffic.

Why not keep lowering bids? There is no free lunch. As you lower your bids, your ad position gets words. This in turn causes fewer impressions and lower CTR. In effect, you’re making your ads slowly disappear from view.

At present, Google AdWords is the only major PPC program to offer an Impression Share (IS) report that tells you how many more people are searching than your budget can cover. This report provides insight into when and to some degree how much you can lower bids. For other platforms, you’ll have to experiment with bids until your budget is not quite being spent every day.

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